Top 3 shipbuilders target $36 billion

Korea’s three major shipbuilders have set a target of $36 billion in ship orders this year, slightly down from last year’s record $37.4 billion. The figure was calculated based on an expected decline in orders and a fall in contract prices.

Hyundai Heavy Industries expects $13 billion in orders of ships, engines and other products this year, down from $14.1 billion in 2006. Daewoo Shipbuilding and Marine Engineering has set a target of $11 billion in orders, the same as last year’s figure. The company has a backlog of around $22 billion. Samsung Heavy Industries also reduced this year’s target to $11 billion from last year’s $12.3 billion.

Sales for Hyundai Heavy and other Korean shipbuilders rose sharply last year as international shipping lines ordered more vessels to carry oil, gas and other products.

Korean shipyards took nearly 50% of the world’s $100 billion ship orders in 2006, swelling their backlogs and enabling them to charge peak prices.

However, the rising cost of steel plates for ship hulls and strengthening value of the Korean currency against the U.S. dollar are reducing the value of Korean shipbuilders? contracts which are based on dollars.