Hyundai Merchant Marine to Say Good Bye to 2M Alliance?
South Korea's largest shipping firm Hyundai Merchant Marine (HMM) is likely to part ways with the 2M Alliance which will expire in April 2020 and join a new ocean alliance said a local media report.According to a report in Business Korea, the 2M Alliance (consists of Maersk Line and MSC) is disadvantageous to HMM as it is not a full member of the alliance. HMM's status fell as the 2M Alliance inked a partnership deal with Israel's Zim Integrated Shipping Services, the report…
DSME Deal Non-starter
The creditors of Daewoo Shipbuilding & Marine Engineering (DSME) still remain undecided over afor the shipyard's latest deal, further complicating troubles for one of the country's major shipyards, Yonhap reported. DSME clinched a US$250 million deal to build three very large crude carriers (VLCCs) on April 4. Under the deal with Maran Tankers Management, a unit of Greece's largest shipper Angelicoussis Shipping Group, Daewoo Shipbuilding will deliver the 318,000-ton VLCCs by 2018.
Is Hanjin Shipping Going Into Court Receivership?
According to a latest report in Korea Times, South Korea's biggest container carrier Hanjin Shipping's efforts to settle the rescheduling deadlines for financing ships and reducing charter fees before the end of July has not yet be resolved. This situation is raising concerns over the possibility that the nation's top shipping line may go into court receivership. Or, Hanjin may get a month's extension from creditor banks of an August 4 deadline of a voluntary restructuring agreement…
HMM May Hire Foreign CEO for Revival
Hyundai Merchant Marine (HMM) will start the process to appoint a new chief executive officer (CEO) when Hyundai Group loses control on Aug. 5, reports Korea Times quoting un-named industry sources. The challenged shipper will begin a new chapter in its 40-year history, breaking free from Hyundai Group and becoming a subsidiary of Korea Development Bank (KDB). KDB is bent on installing a new leadership at the shipping line and is open to hiring a foreign chief executive. To make a pool of candidates, the creditor reportedly appointed a number of executive search firms.
HMM-Hanjin Marriage on Anvil
The Korean government has said that it will consider merging ailing Hyundai Merchant Marine (HMM) and Hanjin Shipping should they successfully normalize their management, according to The Korea Times. "Once the normalization program for the two shipping companies is wrapped up, the government will consider various plans including the merger of the companies," said Financial Services Commission (FSC) Chairman Yim Jong-yong. He said, “The possibility of the merger is not so different from the direction of our restructuring plans for shipping companies revealed earlier.
STX Shipbuilding Struggles to Survive
STX Offshore & Shipbuilding may be put under a court-led restructuring scheme, paving the way for the shipyard to avert liquidation, says a report in Korea Times quoting local court. Last month, STX Shipbuilding, once Korea's No. 4 shipbuilder, filed for receivership to stay afloat as its creditors decided to end a similar rehabilitation program for the shipbuilder. The shipbuilder is required to submit its self-rescue plan to the Seoul Central District Court by Sept. “It is regrettable…
HMM to Join New Shipping Alliance
Korea Times says that Hyundai Merchant Marine (HMM) will join a new global shipping alliance, as the cash-strapped shipper has successfully reached a debt-rescheduling deal with its bondholders. HMM announced that it has reached a resolution with holders of all five bond issues that are maturing in 2016 and 2017. South Korea’s second largest shipping line had held meetings with holders of the 177-2, 179-2 and 180 issues on 31 May, and holders of the 176-2 and 186 issues on 1 June.
No Merger for Ailing Korean Shipmakers
The South Korea government plans to drop its forceful measures to push ailing local shipbuilders to merge with each other as mergers or additional cash outlays to Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo Shipbuilding and Marine Engineering (DSME) are unlikely to boost their bottom line, reports Korea Times. The Korean ship buildes are under heavy pressure on accumulating debt and zero new building orders in April. The creditors have been urging…
S. Korean Shipyards Order Books Empty?
The global slump in the shipbuilding industry means that South Korea's ship yards have to look far and wide for new orders. Combined, the three major yards have only received one order in the first quarter of the year. Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries (SHI) have received zero new shipbuilding orders, according to sources quoted by local media Yonhap. Hyundai Heavy Industries (HHI) is the only one among the three to have landed a KRW150 billion ($130.6 million) order in March to build two petrochemical tankers.
KAMCO Becomes White Knight for Shipping
Acquiring ships from financially troubled shipping companies will remain one of the mainstay jobs handled by South Korean finance house Korea Asset Management Corporation (KAMCO) next year, reports Korea Times. The company has bought 33.3 billion won worth of assets from two SMEs in the January-October period and plans to acquire assets valued at 40 billion won from two to three SMEs by December, a move to give relief to financially troubled companies, KAMCO Chairman Hong said in a press conference on Dec.
KT to Manage Massive Submarine Cable Network
Korean Telecommunications provider KT has been named the key operator of the world's largest submarine network cable, New Cross Pacific (NCP). Korea's dominant fixed-line operator said it will run a network center to control the submarine cable which helps connect network systems in Asia-Pacific countries to the North American region. The company said it will start operation of the 14,000-kilometer-long NCP cable in December 2017. The purpose of the NCP Project is to form a submarine cable network with a data processing capacity of about 80 Tbps across the Pacific Ocean.
Samsung Companies Consider Merger Again
South Korean shipbuilder Samsung Heavy Industries Co will try again to merge with sister company Samsung Engineering Co Ltd later this year, reports Korea Times. Samsung Engineering CEO Park Jung-heum has said he will once again pursue a merger talk. "Before pushing for the deal, we need understanding from the financial markets, which we believe is a key condition," he told local reporters. Samsung Heavy's planned $2.5 billion takeover of Samsung Engineering collapsed in November due to shareholder opposition.
Hyundai Heavy Retirement Program Back-Burnered
Hyundai Heavy Industries (HHI) will stop dismissing employees through voluntary retirement plans and pay each of their workers a special bonus of 1 million won ($910), the company CEO said. The Korea Times quoted a statement addressed to employees by HHI CEO Kwon Oh-gap that HHI will stop dismissing employees through voluntary retirement plans and pay each of their workers a special bonus of 1 million won ($910). Kwon, who took over in September, said that Korea's largest shipbuilder will no longer introduce voluntary retirement programs.
Has Shipbuilding Hit Bottom?
The shipbuilding industry shows signs of bottoming out with the global market index pointing to an upturn, & Korean players receiving more orders from abroad. Citing Clarkson Research Services, the Korea Times reports that a total of 277 vessels were ordered in the first quarter of the year, up 39 percent from the same period in 2012 and 93 percent from 2011. Korean small and medium-sized shipbuilders also clinched record orders in the first quarter, for the first time in three years according to the Export-Import Bank of Korea…
STX Group Seeks 2013 Turnaround
Korea-based conglomorate STX saw tough times the past year due to severe cash shortage, but is seeking a turnaround in 2013 after offloading some assests. Market analysts have mixed views for STX. Some say that its bold move will help the conglomerate get back on track, while others counter that it will continue struggling to stay afloat due to the unfavorable business environment, reports 'The Korea Times'. The corporation has raised 1.12 trillion in cash by selling its stakes…
Somali Hostage Release: S. Korea Applauds Singaporean
The Korean government to honor Singaporean shipping company owner for his efforts to successfully rescue Korean sailors from Somali pirates. Four South Korean crew members were kidnapped by Somali pirates on April 30, 2011 aboard the MT Gemini, a tanker operated by Singapore-based Glory Ship Management, and after 582 days of captivity, they were set free after the firm paid an unspecified amount of ransom. (the South Korean government maintains a policy of not directly engaging with pirates) reports the Korea Times.
Korea's Big Three Shipbuilders on Bumpy Road
Recent studies by Korea's International Trade Association & Hyundai Research Institute see major exporters facing a tough year ahead. The International Trade Association sees major exporters facing a tough climate for exports next year amid declining demand in overseas markets, according to private think tanks and industry experts, reports The Korea Times. Three major downside risks are weighing on local firms ㅡ the appreciation of the Korean won, the economic recession in the eurozone and spreading protectionism.
Unusually, Somalia Legally Detains Ship
Somali authorities have seized a North Korean vessel for allegedly dumping cement off the country's coast, & will prosecute. A North Korean-flagged ship and its crew were captured by the quasi-government of Puntland near the coast of the Puntland port city of Bossaso while discharging some 5,000 tons of cement, NK News said, citing Somali radio station, Radio Gaalkacyo, and as reported in 'The Korea Times'. The M.V. Daesan had been headed to Mogadishu but its cargo was rejected by businessmen there because the cement had been spoiled by water leakage, the Somali radio report said.
Korea's STX Offshore Wins Patrol Ship Order
STX Offshore wins US$ 132-million order for 3 patrol ships for the Korea Coast Guard. Under the deal with the Korea Coast Guard (KCG), STX Offshore will deliver the vessels by the end of 2015, the company told Korea Times. The vessels, equipped with a Vulcan cannon, can cruise at an average speed of 30 knots. STX Offshore & Shipbuilding Co., the nation's fourth-largest shipbuilder, also delivered similar patrol ships to the KCG in 2010 and 2011.
Shipbuilder Hyundai Mipo in Profit Freefall
Korean Shipbuilder Hyundai Mipo reports net plunges on falling orders in second quarter of 2012. Hyundai Mipo Dockyard Co.,reports that its second-quarter earnings dropped 76 percent from a year earlier mainly due to a decline in new shipbuilding orders reports Korea Times. Net profit reached 21.6 billion won ($19.1 million) in the April-June period, compared with a profit of 88.5 billion won a year earlier, the company said in a regulatory filing. Sales sank 76 percent on-year to reach 1.09 trillion won over the cited period…
Korean Shipbuilders' Unsold Newbuilds
Korea's leading shipbuilders post declining profits in second quarter 2012, as well as a growing inventory of unsold vessels. Shipbuilders here have put unsold ships up for resale at below-market prices but are struggling to get them off the hands, reports the 'Korea Times'. In June, DSME said it was scrambling to find takers for two 320,100 deadweight tonnage (DWT) crude carriers, after Taiwan’s Today Makes Tomorrow (TMT) withdrew the orders for the ships it made for in 2007.