Park Dae-young, president and ceo of SHI, noted that 2017 will be a crucial period for the group at a time when local shipbuilders are struggling to cope with debts and a lack of work.
“We raised this year’s target for new orders, compared with $5.3bn set for last year,” Park told reporters. Park hinted that SHI has a project with a contract that the group will most likely win this year.
In early January, SHI landed a $1.27bn deal to build a floating production unit (FPU) for BP’s Mad Dog II project, making it the first significant deal for the ailing South Korean shipbuilders.
SHI, along with compatriots Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering (DSME), are burdened by weak cash flows and slashing workforce as part of their harsh cost cutting measures.
“The shipbuilding sector would get better this year than in 2016, but there won’t be like a bumper year that local shipbuilders once enjoyed,” Park was quoted saying.
“Experts say the industry would marginally improve starting next year. There would be some job cuts, including voluntary retirement, this year as well, but the size would be adjusted, depending on (how smoothly we can clinch) new orders,” Park added.
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