Samsung

Samsung Heavy Industries says sales this year will reach $3.1 billion (shipbuilding accounts for 71 per cent) and net profits will almost double to $130 million. The company is pointing to a rise in newbuilding prices and recovering world trade to predict a good future for the Koje yard which has an order backlog of 78 vessels, about two years` work.

However, Chung-Youl Hwang, managing director of the shipbuilding and plant division, says the company is no longer competitive in building bulk carriers, and the yard will concentrate on value-added tonnage. While passenger ships figure in the yard`s plans, the letter of intent with Carnival subsidiary Holland America Line to build cruise vessels has lapsed, although the parties are still talking, says Mr Hwang.

The Motor Ship

asked Mr Hwang if the yard would be profitable while building the vessels signed at depressed prices over the last two years. Mr Hwang said improving productivity at the yard would allow it to make a profit on building those vessels.