World’s Top 3 Shipbuilders Post Record Loss on Deep-Sea Failures

29 Jul 2015   South Korea

The world’s three biggest shipbuilders posted a combined 4.8 trillion won ($4.1 billion) in operating losses in the second quarter, paying the price for a failed foray into deep-sea oil rigs. Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. — South Korea’s Big Three shipbuilders — all reported losses Wednesday that were far worse than analysts had estimated. The root cause: a venture into offshore oil rigs starting around 2010 to avoid direct competition with Chinese shipbuilders, who had the advantage of cheap labor to make low-profit tankers. Mounting losses at vessel makers are the latest example of difficulties for the global shipbuilding industry after a glut of vessels and low freight rates spelled trouble for Chinese shipyards in recent years, prompting […]

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