Shipbuilding Industry Cruises
into 'Blue-Ocean'Management

Posts an outstanding performance

Since the early 1970s, when the Korean shipbuilding industry began to participate in the world shipbuilding market, the industry has steadily grown despite world economic recessions which arose from two separate oil crises. Now, Korean shipbuilders are exporting a variety of ships with annual sales worth over US$ 15 billion, most of which consist of high value-added vessels such as large-sized tankers, ultra-large containerships and gas carriers. The industry maintains a leading position in the world shipbuilding market qualitatively, not to mention quantitatively.

STRENGTH OF THE DOMESTIC INDUSTRY ― The Korean shipbuilding industry has succeeded despite severe competition in the world shipbuilding market. The main factors are:
First, the large-scale facilities which make it possible to achieve economies of scale in the shipbuilding industry. As a result, seven Korean shipyards rank top ten shipyards in the world.
Second, the Korean shipbuilders possess great advantages in securing the highest quality ship machinery and equipment, especially steel plates and marine engines. The localization of the ship machinery and equipment production stands at more than 90% and about 80% of this is installed in our domestically produced vessels
Third, design flexibility supported by expert technicians and cutting-edge technology makes it possible to deliver vessels required by shipowners on time.

NINE STARS OF KOREAN SHIPYARDS ― The following companies represent the Korean shipbuilding industry: Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, Hyundai Samho Heavy Industries and Hanjin Heavy Industries & Construction all specialize in VLCC, LNG carrier and large containership construction. Two medium-sized shipyards, Hyundai Mipo Dockyard and STX Shipbuilding, are highly experienced in product/chemical carriers and containership construction. And two small-and medium-sized shipyards, Shina Shipbuilding and Daesun Shipbuilding & Engineering, are strong in small containerships and tanker construction.

'BLUE-OCEAN'MANAGEMENT ― Undoubtedly, the Korean shipbuilding industry is a textbook success story, as proven in its 30-year journey to become number one in the world shipbuilding after a humble start. But the voyage is not ending. New challenges and responsibilities lie ahead to maintain, develop and improve global leadership through strategies such as "Blue-Ocean"management and innovation.
The industry vision includes specific targets to be achieved by 2015. It expects to increase its annual shipbuilding volume to 16.7 million GT, accounting for 40% of global production; expand ship exports to USD 17 billion per year, along with marine equipment exports of USD 2 billion annually; and achieve a high-value-added vessel share of 40% of total output.
Projections for 2015 show high value added products, including super-large containerships, manpower-cost savings and new high value added ships coming to fore. Meanwhile, deep-sea underwater exploration systems, facilities for exploitation of marine energy resources, etc. will become key products in the undersea resources development and floating maritime structural fields. nw