S Korean shipyards get record orders
Afp, Seoul
Orders received by South Korean shipyards hit a record high of 33.2 billion dollars in the first half of this year thanks to a surge in global demand, official data showed Tuesday. High oil prices are fuelling worldwide demand for crude carriers and offshore exploration equipment. The figures represent a 51.3 percent increase in value from the same period in 2006, according to the Ministry of Commerce, Industry and Energy. In the first six months to June, South Korea's shipbuilding orders soared 38.2 percent year-on-year in terms of tonnage to 11.3 million compensated gross tons (CGTs), it said. South Korean shipyards swept orders for all 13 liquefied natural gas carriers placed by shipping companies around the world during the period, the ministry said. Their first-half order backlog rose 14.3 percent year-on-year to 43.82 million CGTs worth 121.6 billion dollars, enough to keep them busy for four years. In the first half they built 5.57 million CGTs, up 12.1 percent, the ministry said. Local companies led by Hyundai Heavy Industries, the world's largest shipyard, have boosted capacity by using floating docks to build ships on land, it said. A state-run think tank cautioned in a report Monday against an excessive expansion of building capacity that could lead to oversupply and a sudden drop in prices. The Korea Institute for Industrial Economics and Trade urged shipbuilders to raise competitiveness through technology innovations instead of focusing solely on securing orders.
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