DSME readies landmark northern investment

Seoul: South Korean company Daewoo Shipbuilding and Marine Engineering (DSME) wants to invest about $150m to construct a shipyard in North Korea, the company said at the weekend, reports Reuters. Daewoo, the world's second-largest shipbuilder, is ready to move ahead with the plan as soon as the North guarantees free movement of goods, South Korean workers and funds, as well as full communications and customs services, it said.

"To digest growing orders we have to produce more, whether it is at home or abroad," said chief executive Nam Sang- Tae. "Domestic shipbuilders have been going abroad for cheap labour and lenient regulations. In this situation there is no reason not to have interest in the North, which has the same language and culture."

The leaders of North and South Korea last week ended a summit, only their second since the 1950-53 Korean war, and agreed for South Korean companies to invest in shipyards in the North Korean ports of Nampo and Anbyon. Mr Nam was in the North as part of the summit delegation and had discussions with North Korean shipping officials, the company said.

Daewoo wants its plant in Anbyon, on North Korea's east coast, to have a capacity to build 200,000 tonnes of ship sections annually, Mr Nam said.  [09/10/07]