Global Shipbuilding Market Shows Signs of Bottoming Out

After a protracted recession, the global shipbuilding market may be bottoming out, according to market data. According to Clarkson Research and industry sources, the new shipbuilding price index remains flat after it fell from 142.2 points in 2010 to 139 points in 2011 and to 126.3 points in 2012. The benchmark is 100 set in January 1988. In monthly terms, the new shipbuilding price has stayed at the 125 to 126 range since November last year after a continuous decline.

 
It stood at 125.6 points as of March. The index pattern signals that the shipbuilding industry is slowing getting out of a recession that began in 2008. The worldwide new shipbuilding order, another measure of the industry sentiment, reached 94 vessels or 72 million deadweight tonnage (DWT) in March, up 7 percent from the previous month and up 12 percent in DWT.

 
The corresponding figure for quarterly terms came to 277 vessels in the first three months, up 39 percent from the first quarter in 2012 and up 93 percent from two years ago.

 
Positive signals to show the industry turnaround include a rise in orders for contracts to use LNG carriers and drilling ships where Korean shipbuilders are competitive. The price of new ships and second-hand ships stopped falling in three years, raising the possibility of a turnaround and it is unlikely to see additional price falls in Korea’s major shipbuilding sectors that include LNG carriers and offshore plants, said a researcher at Shinhan Investment.

 
Auto Production at Hyundai’s Czech Plant Surpasses 1mn

 
South Korea’s auto giant Hyundai Motor announced recently that the number of cars produced at its Czech factory topped the one million mark five years after the plant began production. Hyundai Motor held a ceremony to celebrate that the combined number of vehicles produced at its factory in Nosovice, the Czech Republic reached the one million mark.

 
Hyundai constructed its factory in the Czech Republic in September 2009 after investing 1.12 billion euros (1.2 trillion won or $1.44 billion) in an effort to expand its footprint in the European market. The factory started the production before its construction was completed. Hyundai Motor’s plant in the Czech Republic received the highest honor of the award, Excellence, which is given to manufactures that have proven its quality production.

 
Of one million units of cars produced at the Czech plant, 540,000 units are the i30, the best-selling model in Europe while 250,000 units are the Tucson ix. Hyundai’s market share in Europe which was at 1.8 percent at the time of the factory’s operation doubled to 3.5 percent in the first quarter (Q1) of this year.

 
“The plant in the Czech Republic, which produces one unit of the best-selling i30 and Tucson ix every one minute, has laid the foundation to expand our market presence in Europe,” said an official of Hyundai Motor.

By Kim Min-su : Here