Hyundai Heavy Industry Group of Korea and the largest shareholder of Daewoo Shipbuilding Ocean Engineering Co., Ltd. (hereinafter referred to as Daewoo Shipbuilding) Korea Development Bank (KDB) reac

Release time：Jun 22, 2019 From：admin

Recently, Hyundai Heavy Industry Group of Korea and the largest shareholder of Daewoo Shipbuilding Ocean Engineering Co., Ltd. (hereinafter referred to as Daewoo Shipbuilding) Korea Development Bank (KDB) reached an agreement to acquire Daewoo Shipbuilding.

According to data released by Clarkson Research, Hyundai Heavy Industries and Daewoo Shipbuilding ranked the top two in hand orders by the end of 2018, accounting for 13.9% and 7.3% of the global market share, respectively. After the merger of the two shipbuilders, their global market share will exceed 20%.

Relevant experts believe that after the merger of the two shipbuilding enterprises, the sharing of technology and patents will make them the world's largest shipbuilding industry, but whether the modern heavy industry military-style management culture can organically integrate with the relatively flat corporate culture of Daewoo shipbuilding remains to be verified in time.

In the first half of this year, the two shipbuilders will hold further negotiations with Korean domestic steel plate manufacturers on plate supply. It is understood that the two shipbuilders purchased about 4 million tons of steel plate last year, accounting for nearly 80% of the total steel plate purchased by domestic shipbuilders in Korea. In the current negotiations, domestic steel plate manufacturers in Korea proposed a price increase of 50,000 won ($44.61 per ton) per ton of steel plate to ease the cost pressures caused by rising raw materials and labor costs, which met with strong opposition.

Relevant personages in the Korean industry said that after the merger of the two shipbuilding enterprises mentioned above, the production efficiency will be improved. The internal competition among the three major shipbuilding enterprises in Korea (Hyundai Heavy Industries Group, Samsung Heavy Industries Group and Daewoo Shipbuilding) will be eased, and the market demand for steel plate is expected to grow. In the long run, it will be beneficial to the development of the plate industry.