Korean Samsung bets on LNG to beat competition

Liquefied natural gas tanker LNG
Source: DollarPhotoClub

Korean Samsung Heavy shipbuilders are betting on LNG carriers to shake off stifling competition from Japan and China. The Koreans find it difficult to compete with China on prices because Chinese ship building is subsidised by the government.

Instead, Samsung Heavy bets on LNG carriers planning to beat the competitors on technology and product quality.

“Our LNG carriers are high value-added products which can differentiate us from them,” Samsung Heavy Industries Vice President at Project Management 7 Kim Nicholas told Korea Times.

“We are going to increase LNG-related projects and expand investment in software and research to strike a balance between shipbuilding and the offshore plant business,” he added.

Samsung Heavy won a 664 billion won ($622 million) order to build three carriers from an Asian shipper on Oct. 13.

It posted a net profit of 17.2 billion won in the third quarter, up 2.2 percent year-on-year.

Samsung and two other major Korean shipbuilders account for about 70 percent of LNG ship orders in the world, according to analysts. Samsung has some 29 percent shares, while Daewoo Heavy and Hyundai Heavy have 27 and 14 percent respectively.

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