Daewoo to build ship plant in North Korea

South Korea's Daewoo Shipbuilding and Marine Engineering said Friday it would build a shipbuilding plant in North Korea as part of joint economic projects agreed at this week's inter-Korean summit.
At their summit, South Korean President Roh Moo-Hyun and North Korean leader Kim Jong-Il decided to build shipbuilding complexes in the North's western port of Nampo and Anbyon on the east coast.
In Anbyon, Daewoo intends to build a plant capable of producing more than 200,000 tons of pre-fabricated ship blocks every year, CEO and president Nam San-Tae told reporters.
The world's third largest shipyard plans to invest up to 150 million dollars in the project, he said.
"We will lead the project but other firms are also welcome," he said, adding Daewoo had pushed for the project to meet growing demand.
South Korea, home to seven of the world's top 10 shipyards, holds a combined 45 percent share of the global shipbuilding market. The industry has secured record orders last year and this year.
The South's Finance and Economy Minister Kwon O-Kyu said the shipbuilding complexes would help South Korean shipyards maintain their strength by using North Korea's cheap labour.
Kwon said South Korean shipyards were nearing their maximum capacity and China was catching up thanks to its own vast pool of inexpensive workers.
"Investment in North Korea will bolster the competitive edge of our industries," Kwon said.