Hyundai buys Chinese yard

Hyundai Corporation, seeking new business, has signed a contract to take over Qingdao Lingshan Ship Engineering (QLSE) in China. The Chinese yard is a medium-size ship builder that mainly constructs vessels between 10,000 and 20,000 tonnes.

Hyundai invested $7.4 million in the Chinese shipbuilder to upgrade facilities. In addition, 30 Korean technicians and managers will work at the shipyard to provide technical know-how and plant management. “Small to medium shipbuilding is a global niche market with minimal competition,” said Juhn Myung-hun, president of Hyundai. “We plan to increase sales to $23 million within the next five years by grafting the marketing ability of Hyundai onto China’s inexpensive labour costs,” Juhn added.