Korean Maritime Industry in the World

Transcription

Korean Maritime Industry in the World
Focused on shipbuilding and offshore activities
Doo Seok KIM
Market Adviser
Innovation Norway, Seoul
February 2009
1) South Korea & Norway
2) Shipbuilding in North East Asia
3) Status of Korean Shipbuilding
4) Trend of Shipbuilding
5) Technology Innovation
6) Global Networking 7) Bilateral Cooperation 2008
8) Opportunity and Recommendation for Successful Business in Korea
9) Eye on Korean Shipbuilding – CNN Report
1) South Korea & Norway
Fact on Korea Compared with Norway
Republic of Korea
Norway
99,678 km2 (223,098)
323,802 km2 (384,802)
Population
49.56 m (2007)
4.68 m (2007)
Capital Region
23.5 m (2006)
1.1 m (2007)
Seoul
Oslo
Republic
Parliamentary democracy
Korean (Hangeul)
Norwegian, Sami
Buddhism 21.1%, Protestantism 16.9%, Catholicism 10.1% (2005)
Lutheran 82.7% (2007)
33% (2006)
33% (2006)
$969.9 bn (2007)
$389.5 bn (2007)
5.0% (2007)
3.7% (2007)
GDP per capita (PPP)
$24,803 (2007)
$53,152 (2007est)
HDI (Human Development Index) 2005
0.921 (rank 26)
0.968 (rank 2)
Area
Capital
Political System
Language
Religion
Tertiary Education (25‐64yrs)
GDP (Gross Domestic Product)
GDP growth rate
Source: Human Development Report 2007/8; IMF World Outlook Database Oct 2008 Ed.; Korea.net; OECD Economic Surveys Vol 2007/6; OECD Education at a Glance 2008; Statistics Norway
4
Korea: Major Industry
•
•
•
•
•
•
•
•
•
•
•
11.3% share of the global market
Exports exceeded US$ 39 billion
No. 1 market share in DRAM, SRAM, and NAND
40% of all orders worldwide
Exports of Korean ships expected to reach US$30 billion in 2008
Korean shipbuilders ranked 1st globally in terms of orders, ship’s completion, and order book
World’s 5th biggest producer for 3 consecutive years with 5.6% share
Exports amounted to US$ 33 billion
Major players: Hyundai Motor, KIA, GM‐Daewoo, Samsung‐Renault, and Ssangyong Motor
No. 1 market share in LCD, PDP, and OLED Major players: LG Display, Samsung Electronics, LG Electronics, Samsung SDI
Source: Invest Korea as of 2007
5
Semiconductors
Shipbuilding
Automobiles
Displays
Korean Top 10 Conglomerates
Conglomerates
SMEs
[Market Cap in KRW tril. July 17 2008]
151.5
Samsung Group (59)
Conglomerate (no. of affiliates)
LG Group (39)
54.5
SK Group (83)
39.4
Hyundai Motor (38)
38.1
Hyundai Heavy (10)
Lotte (47)
Kumho Asiana (53)
27.5
SMEs
15.9
10.9
GS (21)
8.3
Hanjin (30)
6.8
Hanwha (43)
5.5
Source: Small and Medium Business Administration
Source: The Korea Times; GS Holdings; LG Corp.
6
Korea: International Trade
• No. 11 World Mechandise Export (2006)
• No. 13 World Mechandise Imports (2006)
• Year 2006 Ratification of FTA with EFTA including Norway
Major export products: semiconductors, automobiles, displays, vessels
etc., wireless communication apparatuses, electrical and electronic articles Source: World Trade Organization (WTO)
Exports by Main Destination (2006)
Hong Kong
Japan
United States
EU(25)
China
21.3%
15.2%
13.3%
8.2%
5.8%
0%
5%
10%
15%
20%
25%
Source: WTO Imports by Main Origin (2006)
Japan
China
United States
EU(27)
Saudi Arabia
16.8%
15.7%
10.9%
9.8%
6.6%
0%
5%
Source: WTO 7
10%
15%
20%
25%
Trade between Norway and Korea
NOK mil
NOR Exports (ROK Imports)
ROK Exports (NOR Imports)
10,000
7,128
5,000
4,334
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: Innovation Norway, StatBank Norway (Statistics Norway)
Exports from Korea to Norway
Exports from Norway to Korea
3500
3000
2500
2000
1500
1000
500
0
2001
Fish
2002
Metals
8
Scient. Instruments
2003
Pulp/paper
Machinery/
Ship's gear
Others
2004
Fuels
2005
Electronics
products
2006
Chemicals
Electrical machinery
2001
2002
2003
Chemicals
Rubber products
Machinery
Road vehicles
Others
Clothing
2004
Electronics products
Ships
2005
2006
Electrical machinery
Computers
2) Shipbuilding in North East Asia
.
9
Why Important – NEA Shipbuilding NEA Shipbuilding in the world (2007)
• Order : 89.0% M/S in the world
• Completion: 81.2% M/S in the world
• Order book: 86.4% M/S in the world
[Source: World Shipyards Monitor, Clarkson]
Korea
Japan
China
• Global market leader (apprx. 40%)
• Focus on high quality standard ship
• Leverages on abundant, cheap labor
• Focus on high value‐added vessels
• Increase yard capability through M&A
• Strong support from domestic shipowners
• Good support from background industries
• Constant improvement of yard facility • Policy support via strategic planning
• Technology Innovation
• Good support from domestic shipowners
• Global shipbuilding networking
• Aim to maintain 1/3 of global shipbuilding
• Handle less value‐added ship but strives to move up
the value chain
• Good potential for future shipbuilding
10
Market Share 2007 Order
Completion
Others, 8.6
Orderbooks
Others, 7.2
Others, 8.4
Europe, 7
Europe, 2.4
Europe, 4.2
Korea, 38
Korea, 41.2
Korea, 38.4
China, 18.4
China, 29.6
China, 35.2
Japan, 12.6
Japan, 24.8
[Source: World Shipyards Monitor, Clarkson]
11
Japan, 19.4
Market Segment ‐ NEA
EU
High Complexity
Cruise/Ferry
LNG
Large Containership
Small LPG
Large LPG
Large BC
Japan
Tanker
Small Container Vessel
Tanker
VLCC
Product T.K
Small BC
China
Korea
Low Complexity
12
Small Vessel
[Source: View of the Korea Shipbuilders’ Association]
Large Vessel
3) Status of Korean Shipbuilding
13
Development of Shipbuilding Industry
Seeking to profitable growth & global shipbuilding networking
2000S
Global Leading Period
1990S
Accumulated the advanced technologies required for high value added vessels
Take‐off Period
1970~1980
Developed by a government‐sponsored economic development program
Growth Period
1960S
Foundation Period
14
Korean Shipyards
Members of Korea Shipbuilders’ Association (KOSHIPA) : 9 Medium & Large Shipyards : 93,300 employment as of Dec. 2006
(Hyundai, Samsung, DSME, STX, Hyundai Mipo, Hyundai
Samho, Hanjin, SLS, & Dae‐Sun)
Members of Korea Shipbuilding Industry Cooperative : 58 Small & Medium Shipyards : 4,000 employment as of Dec. 2006
(Dae‐Han, 21 Century, INP, Shin‐An, SPP, Sung‐Dong, Nok‐Bong, C & Heavy, Etc.) 15
7 Korean Mega Shipyards
7 Mega‐size Korean shipyards capable of building VLCC are ranked in the World Top 10 Shipyards. by Clarkson in January 2008.
Ranked No.1
No.1
Ranked No.2
Ranked No.3
Ranked No.4
Ranked No.5
Ranked No.6
Sung Dong Shipbuilding & Marine Engineering Co., Ltd. [Source: Clarkson in terms of order book status in in January 2008]
16
Ranked No.9
Trend of New Order
During 2003 ~ 2007, Korean shipbuilders has received approximately of global order in general.
35~40%
As of October 2008, Korean market share increased up to 41.4% in the world even though global new order demand fell sharply compared to same period of 2007. 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Others
Korea
2008
[Source: Lloyd’s World Shipbuilding Statistics]
Ship owners prefer Korean shipbuilders as they provide various kinds of ships with high quality and higher reliance in terms of delivery.
17
Trend of Ship’s Completion & Order Book
• Korean shipyards built one in every three newly‐constructed vessels in the world in 2007, totaling 11.2 million CGTs, which accounts for 34 percent of the global total in 2007. • Korean shipbuilders' combined order backlogs totaled 64.4 million CGTs, making up nearly 36.1 percent of 178.2 million CGTs in global backlogs in 2007. By shipbuilder, Hyundai Heavy Industries Co., the world's largest shipyard, had 14.45 million CGTs in order backlogs, trailed by Samsung Heavy Industries Co. with 10.9 million CGTs and Daewoo Shipbuilding and Marine Engineering Co. with 9.68 million CGTs.
Ship’s completion analysis by Lloyd’s World Shipbuilding Statistics
18
Order books analysis by Lloyd’s World Shipbuilding Statistics
Korean Offshore Yards
Korean shipyards have become a Mecca for giant energy corporations seeking highly complex, cost‐effective offshore installations to access and exploit deep‐water, high‐potential oil and gas resources.
New Offshore Yards
Traditional Offshore Yards
• Drill Ships (Noble Drilling Holdings)
• Deepwater Pipe Layer (Technip)
Annual offshore order amount for HHI, SHI, DSME (US mil)
18,000
16,400
16,000
14,000
11,630
12,000
10,000
8,000
• Seismic research vessel (BGP Inc) • Diving Support Vessel (Gulma offshore)
6,970
6,000
4,000
2,870
2,930
2,500
2002
2003
2004
2,000
0
2005
Source: HHI, Samsung, & DSME
19
2006
2007
Offshore Experiences Kristin Semi‐submersible FPU

Client: STATOIL, Norway
Production: ‐ Gas: 64.6MMCFD
‐ Condensate: 126,000 B/D
Weight: ‐ Topsides: 18,000mt ‐ Hull: 14,000 mt Hull Dimension:
‐ 82m(L) x 88m(W) x 41m(H)
Builder: Samsung H. I.
Delivery: 2003
[Source: Samsung H. I.]
20
Semi‐submersible FPU From
Semi‐submersible FPU From
Norwegian Owner!
Norwegian Owner!
Offshore Experiences NEXUS FPSO

Client: Nexus, Norway
Production: ‐ Oil: 80,000 B/D
‐ Gas: 60MMCFD
Weight:
‐ Topsides: 6,000 MT

Storage: 1.0M barrels oil
Hull Dimension:
‐ 258m(L) x 46m(B) x 26m(D)
STP Turret
Self propulsion, 2 propellers
Delivery: 2009
Generic FPSO
Generic FPSO
in Norwegian Water!
in Norwegian Water!
21
Offshore Experiences STENA Drilling / Drillship

Client: Stena Drilling, Sweden
Dual Ram Rig
Thruster:
‐ 5,500kw x 6EA
Hull Dimension:
‐ 228m(L) x 42m(B) x 19m(D)
Water depth: 10,000ft
Drilling depth: 35,000ft
Norwegian water (PSA)
Delivery: 2007 & 2008
22
THE WORLD FIRST DRILLSHIP THE WORLD FIRST DRILLSHIP IN NORWEGIAN WATER !
IN NORWEGIAN WATER !
Offshore Experiences West E‐ Drill Semi‐submersible RIG

Client: Eastern Drilling ASA, Norway
Dual Ram Rig
Weight: 30,000 mt Dimension:
‐ 82m(L) x 73m(W) x 38m(H) Water depth: 10,000ft
Drilling depth: 30,000ft
Norwegian water (PSA)
Delivery: 2007
Ultra Large Semi RIG for Norwegian Water Operation !
23
Naval Shipbuilding
KDX series : Korean Destroyer eXperimental
Gas turbine generation sets Under plan to achieve a “Self‐Reliant” defense
Anti‐submarine system
KDX III
KDX II
KDX I
• 3,800 ton class
• 3 units
• All built by DSME
24
• 5,000 ton class
• 6 units
• 3 built by DSME
• 3 built by HHI
• 7,000 ton class
• Aegis destroyer • 3 units
• 2 built by HHI & DSME
• 3rd to be built by HHI
Naval Shipbuilding
KSS series : Korean Submarine Project Under plan to achieve a “Self‐Reliant” defense
KSS III
KSS II
KSS I
• 1,300 ton class
• Type 209
• 9 units
• All built by DSME
• 1,800 ton class
• Type 214
• 3 + 6 units • 3 built by HHI
• 4th to be built by DSME
• 3,500 ton class
• Propulsion ??
• 9 unit • In field by 2020
It is 65.3m long and 6.3m wide with full speed of 20 knots. The submarine can continue its underwater operations for two weeks by improving submersible depth up to 400m through the application of high tensile steel to the hull body and substantially increasing the capability of underwater cruise with the Air Independent Propulsion (AIP) systems.
25
Naval Shipbuilding
LPX : Land Platform Experimental
PKX : Patrol Killer Experimental
• large transport and marine assault support vessel
• 570 Ton /40 knot / Stealth application / Water jet propulsion system
• 1 built by Hanjin Heavy Industries
• 1 built by Hanjin Heavy Industries
• Capable of carrying a battalion of marines, 10 helicopters, armored landing vehicles and two air‐cushioned landing craft.
• 4 to be by Hanjin Heavy Industries
• Armed with one 76mm cannon, one 40mm cannon and an advanced radar
system that can detect and track over 100 targets simultaneously
Exhaust gas system
26
Back‐Ground Industries
Korean marine diesel engine builders
Korean steel plates manufacturers
More than of global market share for marine 50%
diesel engine.
World largest iron & steel production country 5th
since 2002 Notes) Under license production with Man B&W and Wartsila for 2‐stroke low speed diesel engine.
[Source: Metal Bulliten]
World 4th largest (production)
Global M/S: 35%
Global M/S: 25%
27
Korean shipping 6th
Leap into the world country in terms of ship holding volume in January 2008.
1st: Greece (175.711 million DWT, 3,087 units)
2nd: Japan (160.722 million DWT, 3,433 units)
3rd: Germany (94.513 million DWT, 3,189 units)
4th: China (83.064 million DWT, 2,975 units)
5th: Norway (45.118 million DWT, 1,400 units)
6th: Korea (36.76 million DWT, 1,063 ships) 4) Trend of Shipbuilding
28
Trend of Shipbuilding
• Changes from market driven factors
Ships
Environ‐
ment
Oil & Gas
29
• High Speed
• Super large Size
• Lightening weight
• Double Hulls
• Double hulls
• Non‐toxic Painting
• Co2, NOX, SOX
• Water Ballast Treatment
• Energy saving
• New Development Projects
• For Deepwater
• For Harsh Environment
• Changes from internal / shipbuilders need
Ship
Design
Ship
Building
Manage‐
ment
• Computerization
• Standardization
• Knowledge exports
• R & D Activities
• Automation
• Integration • Block outsourcing
• On‐ground shipbuilding
• Maximize dock operation
• World economic recess
• Survival • Cost Saving
• Industry re‐structuring
• Global networking
Block‐outsourcing
Direct greenfield investment to operate Chinese hul block manufacturing sites
CHINA
KOREA
Cheap Labor Cost
Shortage of Supply
Vast factory Site
WHY?
Block manufacturers
convert to shipyards
Transportation
SHI
SHI Ningbo (120,000 t / year) SHI Rongcheng (300,000 t / y)
30
Increasing Block
Purchasing from JPN
DSME
DSME Yantai (200,000 t / y)
DSME Shangdong (300,000 t / y)
STX
Block factory in Shandong Province.
LNG Carrier Development
Size
Propulsion
Types
CSS (Moss VS. Membrane)
155K LNGC Æ 210K LNGC Æ 260K LNGC
Steam Turbine
Diesel Engine & Reliquefaction plant
Dual Fuel Diesel Electric propulsion
Gas Turbine
Conventional LNGC
LNG‐RV (Regasfication vessel)
CNG (Compressed natural Gas ) vessel
LNG‐FPSO, LNG‐FSRU
• 266,000 CBM NLGC, ’MOZAH’ built by SHI
• World biggest LNGC • Qatar Gas 31
Wartsila Hyundai Engine Co. (WHE), a joint venture of Korea’s Hyundai Heavy Industries and Finland’s Wartsila, completed facilities in Korea that will be capable of producing 129 dual‐fuel engines for liquefied natural gas carriers. The company received an order from Samsung Heavy Industries to supply 16 engines for four ships.
Container Ship Development (high speed, large size)
Korean shipyards keenly recognizing this potential trend, is making efforts to get orders for super large and high speed container ships that meet the demands of the clients by solving technical problems related to ship type, speed and fuel efficiency. Recently STX have developed 22,000 TEU container ships while the world’s largest containership currently in service is a Danish ship of 13,500 TEU capacity.
I
II
III
IV
V
VI
VII
VIII
Description
Late 1960s
1970s
End of 1970‐early 1980s
Late 1980s
First half
of 1990s
Late
1990s
1997‐
2002
Early 21st Century
Alias
Feeder
Handy
Sub‐
Panamax
Panamax
Post –
Panamax
Super Post Panamax
TEU
700‐1500
1800‐2300
2000‐2500
2500‐4400
4300‐5400
6000‐6670
7000‐8700
10000‐13000
Length(m)
187
263.3
247.4
281.6
260.8
302.3
331.5
365
Width(m)
26
32.2
32.2
32.25
39.4
42.8
32.8
55
Depth(m)
15.5
19.6
24.1
21.4
23.6
24.1
24.1
30
Speed(kn)
22.6
26
19.5
24.5
24.2
25
26.4
32
Ultra Super
Post Panamax
TBA
Massive VLCC Orders in 2008 After 34 VLCC contracts in 2007, VLCC order amounted to 108 vessels (as of September 05 2008) in the world.
Among the total new VLCC orders (108 vessels) in 2008, 84 vessels (77.7%) secured by Korean shipyards.
STX (23 VLCCs), Hyundai (22 VLCCs), Daewoo (20 VLCCs), Sungdong (10 VLCCs), Samsung (7 VLCCs), Hanjin (2 VLCCs)
DSME has built 102 VLCCs among the total 506 VLCCs constructed worldwide since 1975 ‐ the world’s highest record for a single shipbuilder.
[Source: Clarkson]
33
Offshore Market
The market of offshore drilling and production system such as rigs, FPSOs, and etc. is closely related with oil price. Since 2005 the market investment has been increasing again due to high oil price. The trend of offshore development field is changed to deepwater and to harsh environment. Recent offshore activities at Korea are concentrating on mega drilling rigs, drill ships, and platforms for deepwater area and hash environment.
Korean shipyards have become a Mecca for giant energy corporations seeking highly complex, cost‐effective offshore installations to access and exploit deep‐
water, high‐potential oil and gas resources.
Recent offshore orders are concentrating on large FPSOs, mega drilling rigs and drill ships.
Worn‐out
Facilities
• Hike of oil prices currently indicates stronger orders for the next few years
Oil Demand
& Oil price
Market investment is increasing since 2005. Development field is changed to deepwater.
Oil Major’s
Profit
Tech.
Develop.
[Source: ODS‐Petrodata]
34
Change of Rig Market Palyers
Most of rig makers in US and EU disappeared since 1990S.
Korean shipbuilders have stronger dominance in rig market, using their shipbuilding skill.
Annual offshore order amount for HHI, SHI, DSME (US mil)
18,000
16,400
16,000
14,000
11,630
12,000
10,000
8,000
6,970
6,000
4,000
2,870
2,930
2,500
2002
2003
2004
2,000
0
35
2005
Source: HHI, Samsung, & DSME
2006
2007
Drill Ship – A New Fashion Market preference of deep water rig (over 5,000 feet water depth) changed fast to drill ship replacing semi‐submersibles.
Korean yards secured over 80% market share for the deep water rigs.
36
5) Technology Innovation
37
New Shipbuilding Technologies Hyundai On‐land Ship Construction: Ship is build on land, then loaded out on a semi‐submersible barge by using air pad and skid.
Ship is floated off by submersing the barge.
(1) On‐land construction
Loat‐out Procedure
38
(2) Load‐out
(3) Transportation
Floating Procedure
(4) Float‐off
New Shipbuilding Technologies STX Skid Launching System:
Two blocks of ship are loaded out by using hydraulic transporter.
The blocks are assembled on a barge and floated off.
39
The on‐ground shipbuilding technology and its derivative technologies ▪ Allow higher productivity and cost effectiveness
▪ Build and launch ships anywhere and any time ▪ Efficient utilization of yard facilities and resources
▪ Improve the safety of working conditions
▪ Flexibly accommodation design changes during construction
Mega Block Technology Mega Block Technology at Samsung Heavy Industries
Mega Block
Giga Block
2K~3K T of block
4K~6K T of block
Tera Block
10K T of block
Ship assembly technology at a dock with about 10 pieces of Mega Block (2,000~3,000 ton per each) using 3,600 ton barge crane vessel to shorten ship construction period at a dock. The technology has been developed a Giga Block Technology which using 5~6 pieces of 4,000~6,000 ton of block and a Tera block Technology which using 2 piece of 10,000 ton of block! 40
Overcome Lenght of Dry‐Dock
DAM Technology at Hanjin Heavy Industries Co., Ltd.
In order to build a bigger vessel than the length of dock facility, an available length of vessel is build at a dock and the surplus part of vessel is built on ground separately. Finally the two parts will be welded at a sea.
Hanjin had built 325m length of 8100 TEU container ships whereas they have 300m length of dock using this DAM Technology. 41
Development of New Types of Vessel HHI CNG Vessel
HHI has co‐developed compressed natural gas (CNG) vessels with EnerSea Transport LLC, it US technology partner. Differing from the LNG carrier that keeps LNG at ‐163 Celsius at near atmospheric pressure, the CNG carrier is a high‐tech vessel that allows natural gas to be transported at a temperature of ‐29 Celsius (‐20 Fahrenheit) and pressures up to 128 bar (1850 psi) in a gaseous state. Having one fourth of the load capacity of LNG, CNG carriers do not require the additional and costly processes in LNG transportation, such as reliquefying and revaporizing the gas. After going through various simulation and tests, it is forecasted that the CNG vessels will be introduced into the market. DSME LNG‐RV Vessel
New technologies have played a role in Korea’s ascendancy. The LNG‐RV is a newly developed LNGC with many additional features such as a mooring system, regasification system, and a discharging system tailored for use with an underwater pipeline.
The merit of this vessel is that it can supply LNG directly into the customer’s pipelines without the huge investment needed to construct LNG terminals. The vessel is literally its own LNG terminal. One LNG‐RV made by DSME and under operating in front of New Orleans area, USA to supply LNG was not damaged from a terrible hurricane Katrina while on‐shore regasfication facilities were totally damaged. LNG offloading to end‐users at UK 42
New LNG Carrier Business Development Business Extension into LNG Supply Chain led by Korean major shipbuilders.
LNGC has been developed up to Qflex (210K) and Qmax (260K) by Korean shipbuilders. (Large size)
LNG RV had been developed by DSME for five years ago.
Samsung received the world first LNG‐FPSO in 2008.
Next commercializaion?
R&D: •CCS (Cargo Containment System)
•LNG BOG Reliqufaction plant
• Ice Class / Arctic LNG Carrier
9 Harsh LNG Trade Route
9 Cold Climate Operation
9 Environmental Protection
Gas
Field
Production
Facility
Liquefaction
Facility
• LNG FPSO
• GTL FPSO
43
• LNGC(Large)
• LNG FSRU
LNG Carrier
Storage &
Regasification
• LNG RV
End
User
New Technologies in 2008 LNG‐FPSO: Samsung awarded a turnkey contract to UK‐Based FLEX LNG to build the world’s first LNG‐FPSO on September 19 2008. LNG‐FPSO, a high‐valued added complex vessel, will cost over US$1 billion to construct, including a US$ 551 million LNG‐FPSO Top‐side plant. Samsung has developed by oneself a LNG‐FPSO Top‐side plant, which is able to produce 1.7 million tons of Liquefied Natural Gas per year and completed a contract in bulk. LNG‐FPSO, which has a maximum transit speed of 9 knots, will be delivered in 2011 to Nigeria and scheduled to produce natural gas for 10 years, after SHI performs its turnkey process from design to a trial run of the LNG‐FPSO.
Pre‐Swirl Stator: It brings lower operational costs with improved speed and less fuel consumption. DSME has been successful after 5 years of untiring study of the ‘Pre‐swirl stator’. The pre‐swirl stator, which has four blades, improves the inflow angles to the propeller by being well placed in front of it. It can minimize operational costs by maximize propulsion efficiency. After conducting a sea trial of the vessel with this device, it showed a significant improvement in performance. It accelerates speed performance by 0.2 knots and reduces fuel consumption by 4%. This remarkable device will be installed on approximately 20 vessels including VLCCs and containerships.
Thruster Pin: It is an airfoil‐shaped device that is attached to the rudder behind the propeller, maximizing thrust force. It extracts thrust from the rotational flow, with the theory of lift generation in aeronautics applied to its design. A large containership consumes approximately 300 tons of fuel per day. If it is equipped with a thrust fin, the annual savings in fuel expenses could total $2.4 million. With an average ship lifetime of 25 years, this amounts to $60 million in savings per ship. Developed by Hyundai Heavy Industries.
44
New Technologies in 2008 Automatic welding robots for stainless steel pipes on LNGC : An automatic welding robot invented by DSME was recently revealed. The robot was designed to improve the productivity of welding work for SUS (stainless steel) pipes whose diameter is about 400 mm or 600 mm . The robot is expected to double productivity. In terms of quality, this method has shown the welding quality is comparable to manual welding. Additionally, DSME no longer have to be concerned about the lack of high‐skilled welding workers in this area.
Plasma welding applied to invar lap joint : A plasma arc welding machine which can be applied to lap joints of invar alloys has recently been revealed by DSME. The welding machine makes less noise, and the welding speed is about 5 times faster than the automatic GTA welding machine which was in use to now.
Korean first ice‐breaking research ship: Hanjin starts to build Korean first ice‐breaking research ship with ceremony of Keel Laying on May 07. The first icebreaker was contracted at 75.4 billion Won between Hanjin and Ministry of Maritime Affairs & Fisheries on December 2006. The icebreaker is 6,950 DWT ton with 109 meters long and 19 meter width. The icebreaker will be propelled by two 6,800 horsepower engines with maximum 16 knot speed. It will be launched at September 2009.
Korean BWMS: Final Approval was granted to Electro‐Cleen™ System of Korean Techcross Inc. at MEPC 58th Meeting on 8th October 2008. So Korean Electro‐Cleen System of Techcross Inc. officially becomes the final approved BWMS (Ballast Water Management System).
45
Maritime Technology Development Road Map 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Surface Treatment Automation System for Block Inside (USD 22,500,000)
Korean Cargo Containment System for LNG Carrier (USD20,000,000)
Nigh
Value
Added
Vessel
Shipbuilding Automation System for Small & Medium Shipyards (USD 11,500,000)
Energy Saving System (USD10,000,000)
Mass Shipbuilding Technology for High Speed Small & Medium vessel (USD11,200,000)
Core Technology on Natural Gas Hydrate Transportation System (USD 23,000,000)
Offshore
Structure Engineering / Productivity / Reliability Improvement (USD 16,550,000)
Dynamic Positioning Analysis / Propulsion & Control System (USD 6,000,000)
Hull Design System (Web basis, Remote Control, Cooperation) (USD 13,800,000) Digital
Marine
Contents
Korean Marine CAD System (USD 15,000,000)
Marine PDM/ERP System (USD12,000,000) Source : Korean Institute of Industrial Technology Evaluation & Planning (ITEP)
46
6) Global Networking 47
Global Shipbuilding Network
STX Group Boosts Stake in Norway's Aker Yards to 88.4%.
Philippines Hanjin Shipyard starts operation
STX Europe ASA
(Aker Yards ASA)
STX Norway
Offshore AS
(Aker Yards AS)
STX Finland
Cruise OY
(Aker Yards OY)
STX France
Cruise SA
(Aker Yards SA)
STX Canada
Marine Inc.
(Aker Yards
Marine Inc.)
STX Group, led by STX Shipbuilding said on August 18 it had raised its stake in
Norway’s Aker Yards to 88.4 percent through a tender offer and would rename the company STX Europe ASA.
With the launch of ‘STX Europe’ as momentum, STX Business Group has laid a cornerstone to having cruise ship and offshore sectors developed as key businesses. In this regard, STX announced that it would promote its ‘specialization strategy by yard’ by selecting Norway, France, and Finland as its 3 major strategic bases in Europe.
48
A view of Subic Bay showing the shipyard which Korea’s Hanjin Heavy Industries & Construction Co., the world eighthlargest shipbuilder, recently completed on 2.3‐millionsquare‐meter lot in Subic Bay Freeport Zone on the west coast of the island of Luzon
in the Philippines, 23 June 2008.
STX Group will enter into Azerbaijan shipbuilding industry
STX Dalian Shipyard begins full‐scale operation
STX Group disclosed on May 25 that it is to invest a total of $430 million together with the State Oil Company of Azerbaijan (SOCAR) and Azerbaijan Investment Company (AIC) to build a shipyard in the Garadaga region, south of Baku by the coast of the Caspian Sea by year 2011.
SOCAR will hold the majority stake of 65 percent while STX and AIC will hold 25 percent and 10 percent each. However, STX Group explained that the actual operation of the shipyard will be managed by STX.
An official from STX Group said, “Shipbuilding demand mainly for tankers is expected as well as high demand for modification of old vessels that are currently owned by Azerbaijan’s government‐run shipping company. Followed by dockyard development,
STX will expand its business scope to marine plant and construction based on the technology and operation know‐how boasted in our heavy industries, energy and development sectors.”
STX Group said on April 05 2008, it has started operation at a USD 1
billion shipbuilding complex in China and will deliver first complete vessel from the site by the end of this year.
The Dalian facility already has USD 3 billion worth of orders, mainly for bilk carriers and pure car and truck carriers, or PCTCs, the group said.
STX Group said that it expects to build about 24 ships a year in Dalian, located in northeast China, from 2009.
49
SHI aims to dominate the Latin American market by acquiring stake in Brazilian
On June 11 2008, SHI announced that it had signed a contract with EAS Shipyard to acquire a stake worth USD 12.80 million, which is 10% of the total investment in the shipyard. The signing enables SHI to hold a dominant position in terms of receiving orders for the total of USD 30 billion worth of drill ships and semi submersible drilling rigs that Brazil intends to demand. The acquisition will also enable SHI to generate new sources of profit, as it will earn royalty income from technology support and dividend income from stake acquisition.
Construction of the EAS Shipyard began in April 2007 at the Suape complex in Eastern Brazil, and the yard has a size of 1,650,000m². Camargo, Queiroz, and PJMR, all from Brazil, invested a total of USD 220 million into this shipyard. SHIs acquisition of a stake will allow Camargo and Queiroz each to hold a 40% stake, while SHI and PJM will hold 10% stake each.
This shipyard will boast a dock that is 400 meters long and 73 meters wide, and upon the completion of construction in September 2009, the shipyard will have a ship production capacity of 160,000 tons. This will indeed be the largest shipyard within the Latin American region.
In 2006, SHI signed a contract with EAS Shipyard to provide technology support in shipyard construction and operation, and in terms of ship design map. Thanks in part to SHIs technology support, the shipyard has already received orders to build ten oil tankers equivalent to the Suez Max type, two VLCCs, and one semi submersible crude oil drilling rig,
which total USD 1.9 billion altogether.
Upon the signing of this contract, SHI will be in a favorable position to win orders for the largescale oil field development project that is scheduled to take place in Latin America, including Brazil. Recently, an ultra large underwater oil field of 40 billion barrels of oil was discovered in Brazil, and Petrobras, a state owned petroleum firm in Brazil, has announced its plans to place an order for 40 drill ships and semi submersible drilling rigs worth USD 30 billion by 2017.
But the Brazilian government obliges foreign firms to jointly promote manufacturing with Brazilian shipyards when they participate in a bid, to boost the country’s shipbuilding industry. This trend is likely to become more pronounced in the future. Petrobras also plans to apply this mandatory clause when making drill ship and semi submersible drill rig construction orders.
SHI’s acquisition of a stake in the EAS Shipyard reflects SHI’s plans to create new profit sources as well as to cope with the Brazilian government’s protectionism. A cooperative relationship with a Brazilian shipyard will serve as the key to winning potential orders.
50
DSME is operating Daewoo‐Mangalia Shipyard in Romania
Starting with 1997, Daewoo‐Mangalia Heavy Industries, a joint venture between DSME and ’2Mai’ Mangalia Shipyard in Romania has been one of the most competitive shipbuilding, conversion, repair yard in the Black Sea area.
New shipbuilding drawings have been provided by DSME’s engineering subsidiary, DSEC for new shipbuilding project at Daewoo‐Mangalia shipyard. DSME shares 51% of the company share.
51
Knowlege Exports
DSME contracted with Oman’s Ministry of National Economy to build a shipyard in Oman. DSME will provide Oman with consulting service on building shipyard which will be the biggest in Middle East. After its construction, the shipyard will operate under the name of DSME.
DSEC, a subsidiary of DSME contracted National Steel and Shipbuilding Company (NASSCO) which is the biggest shipyard in San Dieago USA to supply shipbuilding consulting, drawings, and equipment at a long terms (6 years) base.
The contract amount was US 420 million dollars. Previously DSEC have been providing DSME Mangalia shipyard with the engineering and procurement since its incorporation. HMD made a deal with Kvaerner Philadelphia Shipyard Inc (KPSI) of USA on December 2004 for the sale of a ship design of 46,000 dwt product and chemical carrier, which is one of the major ship types being built at HMD. Key contents of the contract are that HMD provides KPSI with ship design, agency service for material & equipment supply and so on. SLS Shipbuilding signed MOU with US Northrop Grumman Ship Systems (NGSS) for the cooperation of naval vessel construction as well as for improving production efficiency at US Avondale shipyard on October 15, 2008. DSEC, a subsidiary of DSME, contracts to export both hull design and major machinery to Vietnamese Bach Dang Shipyard at a value of USD 462 billion for two ships. The vessels are 49,000 DWT product carriers and DSEC will take charge of basic & detail design of the vessels while supplying Bach Dang Shipyard with major machinery. 52
7) Bilateral Cooperation 2008
53
Bilateral Cooperation in 2008
• Norwegian ship owner Westfal Larsen opens a site office at Hyundai Mipo
On June 26th an opening ceremony was held at Hyundai Mipo Dockyard (HMD) for the new site office of Norwegian ship owner Westfal Larsen. Representatives from Westfal Larsen, HMD, and classification societies attended the
ceremony. Mr. Dakers is expected to be the chief supervisor of the site office, which will begin operations in May of 2012.
Westfal Larsen, one of HMD’s major clients, currently has eight 46,000‐dwt Product Tankers in HMD’s backlog. On
June 10th a steel‐cutting ceremony was held for Hull No. 2061, the first of the eight vessels to be built.
• Daehan Shipbuilding delivered first & second vessels to Norwegian shipowner Golden Ocean Group Daehan Shipbuilding is one of fast growing Korean medium sized shipbuilders. Since its operation of the 1st dock facility at new shipyard located in Haenam, Junranam‐do, Korea, Daehan have delivered the first and second 170,000 DWT bulk carriers to Norwegian shipowner ‐ Golden Ocean Group. Golden Ocean Group has ordered total eight (8) 170,000 DWT bulk carriers to Daehan Shipbuilding.
• Glovis contracts to buy 3 car carriers from Eukor Car Carriers
Hyundai‐Kia Group’s logistics affiliate, Glovis disclosed on March 25 that it is to begin marine transportation services for completely assembled cars after concluding a sales contract for three car carriers with Eukor Car Carriers.
Glovis purchased two 4,212 CEU (Car Equivalent Unit) vessels and a 6,037 CEU ship from Eukor Car Carriers for a total cost of $101.6 million.
54
• Aker Solutions wins three drilling equipment contracts
1 February 2008 ‐ Aker Kvaerner has been awarded a drilling equipment contract by Daewoo Shipbuilding & Marine Engineering Co. Ltd (DSME) in Korea for an ultra‐deep drillship. The total contract value for Aker Kvaerner is approximately USD 130 million.
14 July 2008 ‐ Aker Solutions has been awarded two contracts with Daewoo Shipbuilding & Marine Engineering Co., Ltd. in Korea for the delivery of identical drilling equipment packages for Odebrecht's two new drillships. The total contract value for Aker Solutions is approximately USD 260 million.
The scope of work for Aker Solutions is to deliver complete drilling equipment packages consisting of engineering, equipment deliveries and commissioning services. The contract party is Aker Solutions' subsidiary Aker MH AS.
• Doosan buys Norway’s Moxy
Doosan Group disclosed that Doosan Infracore recently acquired Norway’s Moxy Engineering AS, a major dump truck manufacturer, for 55 million euro (85.3 billion won).
Moxy, located in the west coast of Norway in Molde, holds source technology for 23‐46 ton range articulated dump trucks (ADT) and owns a sales corporation in the U.S. and R&D center in the U.K. as well as 61 dealer networks in Europe and North America.
• Hyundai Samho delivers two 6,500 unit PCTC to Eukor Car Carriers
HSHI (Hyundai Samho Heavy Industries) delivered two 6,500 unit rollon / roll‐off car carriers (PCTC) to EUKOR Car Carriers Inc. on January 3 and March 27 respectively. The first 6,500 unit PCTC named Morning Conductor and the second named Morning Composer measures 199.98m in
length, 32.26m in width, and 32.64 m in depth with a service speed of 20.5 knots. HSHI has a backlog of three 6,500 unit PCTCs and four 8,000 unit PCTCs for EUKOR Car Carriers Inc. Meanwhile, HSHI delivered two 6,500 unit PCTCs to Tailwind Shipping Limited of Norway in 2007.
55
• Odfjell continues charity work
As part of the Odfjell HSE (Health, Safety and Environment) incentive program for the H3023 Deepsea Atlantic Project at DSME, several relevant personnels from both Odfjell and DSME visited the House of Bethesda, a residence for people with disabilities, and donated goods such as a car, a TV, and exercise equipment on May 24.
• Wallenius Lines and Wihl. Wihelmsen place large newshipbuilding orders in Korea
Wallenius Lines (OW) and Wihl. Wihelmsen (WW) have agreed with HHI (Hyundai Heavy Industries) to build four (4) new Large Car and Truck Carriers (LCTC). In addition, OW and WW have also agreed with DSME (Daewoo Shipbuilding & Marine Engineering) for the building of four (4) LCTCs.
The LTCTs will be deployed in OW’s and WW’ joint venture Wallenius Wihelmsen Logistics’ global trade. The vessels will be 228 meters long and have a car carrying capacity of 8,000 units. The vessels will be built to the latest design to meet the service and cargo requirements of Wallenius Wihelmsen Logistics’
customers. Seven of the vessels will be delivered in 2011 and one will be delivered in 2012. OW and WW will own four vessels each.
• TTS Marine ASA wins NOK65m winch systems order from Korean shipyard
Norwegian marine and offshore systems and equipment provider TTS Marine ASA said on 25 August that its German subsidiary, TTS Kocks GmbH, has secured a NOK65m equipment contract from a South Korean shipyard. The order covers electrical winch systems for nine container vessels and will be delivered during the first quarter of 2009. TTS Kocks is part of TTS Marine's Deck Machinery division. 56
• Seminar on “The future in Artic Maritime Operations” by DNV Korea
DNV Korea in cooperation with the Royal Norwegian Embassy holds a seminar on “The future in Artic Maritime Operations on May 09, 2008 at The Westin Chosun Hotel, Seoul, Korea.
With having four distingushed speakers, Mr. Didrik Tønseth, Norwegian Embassador in Korea, Mr. Olav Orheim, Sepcial Advisor, Research Council of Norway, Mr. Jens Henning Koefoed, Senior Advisor, Norwegian Maritime Directorate, and Mr. Wilhem Magelssen, Senior Vice President, DNV, there were one introduction & welcome speech and three presentations on ‘The artic – the climate challenge, ‘Proposal for a new polar code’, and ‘Possible future consequences/opportunities’.
Seminar participants are comes from Korean major shipyards, shipowners, and other related organizations. • Aker Yards names new Korean COO
Aker Yards has appointed Sang‐Ho Shin as Chief Operating Officer (COO). Shin comes from a position as vice president of STX Shipbuilding in Korea, where he has been chief for the Jinhae shipyard. Sang‐Ho Shin has held several senior management positions within STX group since 1980, and has a university education within industrial strategy and mechanical engineering. Aker Yards, Mr. Shin will focus on efficiency, procurement, logistics, knowledge transfer, technology & innovation.
• Hyundai Mipo Dockyard to produce a Norwegian OHGCC
Hyundai Mipo Dockyard (HMD) started to produce its first OHGCC (open hatch general cargo carrier) on October 08. The vessel (length 208.2m, width 32.2m, and height 19.5m) is one of total four 49,000 DWT OHGCC series ordered from Norwegian Grieg.
57
• Naming ceremony for Odfjell’s semi rig ‘Deepsea Atlantic’
The naming ceremony for a semi‐submersible drilling rig for Odfjell Invest Ltd. was held on September 19 at Daewoo Shipbuilding & Marine Engineering (DSME) in the presence of around 100 people, including: Mr. Abraham Odfjell, Owner of Odfjell; Mr. Ketil Lenning, CEO of Odfjell; Mr. Michalis Sapountzoglou, Executive Director/Treasurer of Metrostar; Mr. Frode S. Larsson, Head of Procurement of StatoilHydro; Mr. Ernst H. Hestnes, Project Director of Odfjell; as well as Mr. S. T. Nam, President & CEO of DSME. The drilling rig was named ‘Deepsea Atlantic’ by Ms. Janike Myre, Executive Vice President QHSE & Business Support of Odfjell. At the ceremony, a worker’s fund valued at 50,000 USD was awarded to DSME to thank all relevant DSME employees for their hard work and effort. In addition, an HSE incentive fund was contributed by Odfjell amounting to 10,000 USD.
H.3023 is a flexible 6th generation, GVA7500 design, harsh environment, ultra‐deep water, semi‐submersible drilling rig and has been chartered by StatoilHydro on a contract scheduled to commence when the unit arrives at a designated location in the North Sea, early 2009. Delivery is set for October 2008.
• Christening ceremony for Seadrill semi rig ‘West Phoenix’
SHI held a christening ceremony on January 18 2008 for its newly completed semiㅡsubmersible rig. The rig named West Phoenix, was commissioned in 2005 by Seadrill of Norway. The rig, the world’s largest, can operate in waters 3,000 meters deep, and is capable of drilling to 12 kilometers. It is equipped with a dynamic positioning system that allows the rig to be held in position by computer controlled propellers in areas where the environment is harsh. It can run at an 8 note speed, which is the fastest among rigs of its class. This rig is the first EPC (Engineering, Procurement, and Construction) project performed by SHI,
meaning that it is the first project in which SHI controlled the entire manufacturing process, including design, material purchase and production. The rig will run in the Norwegian coastal area of the North Sea.
58
• Naming ceremony for Seadrill semi rig ‘West Hercules’
The naming ceremony for the H.3019 semi‐submersible drilling rig ordered by Seadrill was held on March the 28th at Quay G2 in the presence of around 80 people, including Mr. Kjell Jacobsen, CEO of Seadrill Management, Mr. Alex Monsen, General Manager of Seadrill Deepwater Units, as well as Mr. W. K. Ki, Senior Executive Vice President & CPO of DSME, Mr. W. S. Ryu, Executive Vice President & Chief Division Officer of the Offshore Business.
Mrs. Carol Darling, wife of Mr. Harry Darling, General Manager of Operations Preparations of Seadrill Deepwater Units, named the drill rig, ‘West Hercules’. During the naming ceremony, Seadrill presented DSME with a donation towards a workers’ welfare fund valued at USD 100,000.
The facility has an upper deck measuring 117.9m x 96.7m and reaches a height of 118m at the top of derrick. It is capable of drilling up to 35,000 feet deep in a water depth of 10,000 feet. The sail away date is set for late May, when she will leave for Husky Oil China Field to be installed.
59
Norwegian Maritime Business in Korea
Norwegian companies have investments worth US$445 mil in Korea (2008 Q2)
Source: MOFAT Country DB
60
8) Opportunity and Recommendation for Successful Business in Korea
61
How to Succeed in Business with Korean Yards Key Points of Business Strategy….
¾ Focus on Core Business Competence with Balanced Business Portfolios
¾ Flexibility ¾ In‐housed engineering capability.
¾ Realistic, Honest and Trust will establish Long term Business Partnership.
¾ Establish Win‐Win Relationship with Clients and Partners. ¾ Safe First and World Best Quality. Recommendation from Offshore & Engineering Div., Hyundai Heavy Industries 62
Successful Cooperation
Current Industry Trend
Global Specialization
Global Specialization
Korean Shipyard
Norwegian Industry
Development & Operation
Development & Operation
of offshore field
of offshore field
Engineering of cryogenic
Engineering of cryogenic
products
products
Shipbuilding materials of
Shipbuilding materials of
every kind
every kind
Recommendation from DSME
63
Advanced ship design
Advanced ship design
Win‐Win
& construction method
& construction method
Advanced production
Advanced production
management
management
Item List to Localize in Korea for Commercial Vessels and FPSO
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Heat Recovery System (Exhaust Gas Economizer)
Components of LPG Reliquefaction Plants (Pressure Vessel, Heat Exchanger, Assembly of Reliquefaction Plant, Control Panel)
LPG Vaporizer / Heater
Anti‐Heeling System for Container Ship
Glycol Water Heater for LNGC
GRP and/or Conductive Plastic Pipes
High Expansion Foam System
Cryogenic Butterfly Valves for LPGC
Hull Stress Monitoring System
Ship Performance Monitoring System
Frequency Converter
Hydraulic Components for Electric Control Engine Cylinder Pressure Monitoring System for Diesel Engine
Automatic FO Filter (5, 10 micron) Reverse Osmosis Type FW Generator for FPSO
Spread Mooring Type Anchor Chain and Wire Rope for FPSO
Freefall Lifeboat / Davit (Over 40 seats) for FPSO
FRP Grating for FPSO
H‐Class Door / Window for FPSO
Reefer Cargo Hold Ventilation System
Source : DSME
64
Kormarine 2009 Kormarine 2009 (The 16th International Shipbuilding & Marine Equipment Exhibition)
in connection with NAVAL & DEFENSE and SEA‐PORT, under an umbrella of MARINE WEEK 2009.
Norwegian Maritime Delegation Program in connection with Kormarine 2009
The purpose of this program is to provide Norwegian maritime delegation with strengthening closer cooperation between companies, promoting Norwegian maritime exports, and finding new business opportunity. Innovation Norway requires minimum 5 Norwegian companies’ participation, with 2 representatives from each.
Planned activities for the delegation (subject to change)
•
•
•
•
•
65
Korean maritime newsletter
Visit Kormarine 2009 Seminar: Presentation on your technology and service during Kormarine 2009
Field excursions to Korean shipyards
Match making session between Norwegian and Korean
9) Eye on Korean Shipbuilding – CNN Report
.
66