Korea lowers newbuild targets

South Korean shipbuilders have lowered their targets for orders this year due to slowing market conditions and an expected drop in demand. The nation’s top three shipbuilders, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, aim to win $24.8 billion worth of orders this year, down $900 million from $25.7 billion a year earlier, the sources said.

Hyundai lowered its target to $7.8 billion in 2006 from last year’s $10.7 billio while Samsung has slashed its target by 10% to $7 billion for this year. Daewoo, however, which won $7.3 billion worth of orders in 2005, aims for $10 billion this year because it expects to receive more orders for LNG carriers and oil rigs in which it has a comparative advantage over its rivals.