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South Korea sits on top again in global shipbuilding orders
South Korea has snatched the top spot for global shipbuilding orders in the first quarter of 2010, beating out China. South Korea had ranked second in the field in the year 2009.
According to the Ministry of Knowledge Economy, new orders commissioned by South Korean ship makers in the period cited increased 195 percent year-on-year and reached 1.54 million compensated gross tons (CGT), enabling the country to secure 51.5 percent of shipbuilding orders placed worldwide.
The gain was due to the positive prospects for recovery in the domestic shipbuilding field and local shipbuilders' aggressive marketing activities to win new orders, the ministry said.
By vessel type, the orders for bulk carriers were largest, accounting for 65 percent of all, while those for tankships (or tankers) accounted for 25 percent. Meanwhile, there were no orders placed for container ships or LNG vessels won by local shipyards, according to the ministry.
The total value of orders for the first quarter surged 262 percent from 2009 and marked US$2.4 billion.
Shipbuilding tonnage in the first quarter recorded 3.41 million CGT, the world's second largest. The amount was a 24 percent decrease from the previous year.
The shipbuilding backlog of orders went down 20 percent from the previous year to 51.6 million CGT, but it is large enough for three more years for local shipyards to work on, the ministry said.
The backlog is weak compared to the industry's boom years from 2003 to 2008, but considering the latest gain in new orders for bulk carriers and tankships, the situation will further improve in the second quarter, said the ministry, and the increasing orders in offshore plant construction for local shipbuilders will also help improve the performances.
Despite the plunging shipbuilding orders for South Korea, which started in 2009, domestic manufacturers in the field still boast their world-class competitiveness.
South Korea has maintained the number one shipbuilder position for almost a decade since 2000, when it firstly outran Japan in global orders, and South Korea's Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering and STX have long been among world's top 10 companies in the field.
