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We must diversify to survive, stresses STX chairman

Seoul: The chairman of South Korea's STX Group added to the growing pessimism in the global shipbuilding industry by arguing that the company should move to hedge its bets in the emerging renewable energy sector, reports the Korea Times, . ??"The shipbuilding and shipping markets won't see a boom for the near future. This is a time for a new business paradigm," Kang Duk-soo said in a meeting with the company's senior executives, last week. ??"Our business is highly dependent on shipbuilding and shipping, and should the two segments plunge any deeper, we will have to worry about survival."??"We need to put more focus on off-shore related businesses in energy development and industrial plans to balance our revenue engines," Kang said, while also promising stricter management in cost and production efficiency as part of the company's "contingency plans." ??"Since 2005, STX has been pushing offshore, industrial plant and solar businesses as the group's next engines. But those pitches haven't paid off due to meager attention," Woori Investment, a local brokerage, said, adding the corporate shift for new revenues needs "considerable time" to reap expected profits.  [23/11/09]?

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