Shipyard gets into shipowning

STX Corporation, the Korean holding company for STX Shipbuilding and diesel engine manufacturer, said it bought 67% of Pan Ocean Shipping, one of the world’s 10 largest bulk carrier shipping companies, for $375 million.

STX aims to become one of the world’s top shipping companies by 2010 by increasing its consolidated sales to 10 trillion won. The group is targeting revenue of 5 trillion won from the shipping sector, 4 trillion won in shipbuilding and 1 trillion won in energy development by 2010.

“With the takeover of Pan Ocean, we have established a complete vertical business structure that encompasses shipbuilding materials development, shipbuilding and shipping,” Kang Duk-soo, head of STX, said at the signing ceremony. “We will be reborn as the world’s best shipbuilding and shipping group,” he said.

The newly acquired Pan Ocean Shipping will change its name to STX Pan Ocean and expand into one of the world’s five major bulk carriers, the group said. Last year, Pan Ocean reported a net profit of 43.1 billion won on sales of 1.98 trillion won. Founded in 1966, Pan Ocean Shipping had been under creditor supervision since 1987 before being put under court receivership in 1992.

I

I

n a separate statement, STX Shipbuilding, Korea’s seventh-largest shipbuilder, said it has received an order valued at $70 million to build four oil tankers from Denmark-based Clipper Group, which will be delivered by November 2007.