March 12, 2000 in Social Responsibility News

SHI Has Received $1.2 Billion Worth of Orders for Building 22 Vessels

Samsung Heavy Industries has made $1.2 billion worth of contracts with some of the major shippers in Japan, Europe and the States in this month alone. The total orders for 22 vessels include 5 container ships of 6,200 TEUs from Japan, 15 container ships of 4,000 TEUs class from Germany and Canada, and 2 oil tankers from Italy. Most of the latest orders are large-sized container ships, confirming that some of world's major shippers have recently completed restructuring programs by way of mergers etc. and are now competitively in rush for ordering container ships in preparation for strong demands from the e-commerce sector. The orders came from NYK (Nippon Yusen Kaisha) of Japan for 5 container ships of 6,200 TEUs, Offen MBH of Germany for 10 of 4,100 TEUs class, Seaspan Shipbrokers Ltd. of Canada for 5 of 4,050 TEUs, and, finally, from Euroceanica N.V. of Italy for 2 oil tankers of 105,000 TEUs class. Samsung said that the order from Japan's NYK was particularly meaningful not only because it was the largest ever made by the Japanese shippers to a Korean shipbuilder but because it was made by one of major Japanese shippers which had traditionally been reluctant to place orders to Korean shipbuilding industry. Samsung stressed that it was their proven track record and advanced technology achieved in building large container ships that made it possible to get the order out of a fierce competition with powerful Japanese shipbuilders. Samsung also said that they were expecting to enter into a leading position in the series shipbuilding market thanks to the orders from Offen MBH for three consecutive years, 10 vessels this year following 5 in 1999 and another 5 in the year before. By the deals of building series ships Samsung is expected to increase its profitability by more than 30%, which is far higher compared with when they make one or two vessels for a model, as they will be able to reduce costs for ship design, purchasing raw materials while improve productivity. The vessels are scheduled to be delivered to the shippers between 2001 and 2003, and put to the major sea routes that link Asia, Europe and the North America. With the latest contracts, Samsung has received $1.4 billion worth of orders so far this year, achieving 60% of this year's target, $2.5 billion. The total contracts so far, 84 vessels of 5.5 million TEUs, have also given Samsung a stable supply of work to be done for more than two years from now on, which are expected to grant Samsung precious opportunities to engage in marketing for highly profitable products including the value-added series vessels. A source from the industry said, Korean shipbuilders have already established themselves as the leading competitors in the world market in terms of both price and technology. They are also greatly benefited by such factors as the establishment of the integrated corporation of ship engine and the stable supply of steel products, enabling them to be further cost-effective. Even the uncertain economic factors such as exchange rate are giving a much greater help to Korean shipbuilding industry than to the Japanese counterpart. Thanks to all this, Koreans are expected to continue to lead the market. In the mean time, a boom for large-scale container ships is likely to last longer since world's major shippers are reorganizing their fleets through strategic collaboration with each other etc., focusing on the rapid increase of sea transportation as well as the freight.


Welcome to Samsung

Sign up & get 10% off

Sign up and get 10% off your first order of $100 or more! Shop Samsung.com to find the best tech at the best prices and recieve news on our latest technology and exclusive offers.*

*Exclusion apply. Order must be a minimumm of $100 or more. Offer valid only for new Samsung.com customers. Must sign up for emails by 11/12/16. Promo code must be used by 11/19.

Fast, easy checkout with Shop Samsung App
Easy sign-in, Samsung Pay, notifications, and more!
Or continue shopping on Samsung.com
×
The Shop Samsung app
Free standard shipping, exclusive offers and financing options.
GET
×
The Shop Samsung app
Free standard shipping, exclusive offers and financing options.
GET
×

You Are About To Be Redirected To Investor Relations Information for U.S.

Thank you for visiting Samsung U.S. Investor Relations. You will be redirected via a new browser window to the Samsung Global website for U.S. investor relations information.
CANCEL
CONTINUE
×

Redirect Notification

As of Nov. 1, 2017, the Samsung Electronics Co., Ltd. printer business and its related affiliates were transferred to HP Inc.

For more information, please visit HP's website. (http://www.hp.com/go/samsung)


Select CONTINUE to visit HP's website.

CANCEL
CONTINUE