Revving Up South Korean Yards for Business South Korea’s government isn’t
taking the latest slump in shipyard orders lightly. Yoo Il-ho, Deputy Prime Minister and Minister of Strategy and Finance, said that the government along with several public entities, will place orders for more than 250 ships, worth about 11 trillion won ($9.59 billion), with domestic shipyards by 2020. The orders are part of a plan to help stimulate the shipbuilding sector. The goal is to have shipbuilders adapt to the changing environment by shifting their focus to higher value-added ship services and provide fresh financing to help boost shipping companies’ competitiveness. One of the new strategies will be to rearrange the shipbuilders’ business portfolio “The government is aiming to privatize the shipbuilder in the end,” said Deputy Trade Minister Toh Kyung-hwan. “But before privatization, the company should normalize its management first, through disposing of under-performing businesses and improving more competitive sectors.” According to a report from the Yonhap news agency, restructuring efforts at Hyundai Heavy Industries Co., will include a spin
BIZ NOTES Louisiana Cat reaches milestone
South Korea plans to order 250 ships by 2020 off of its non-shipbuilding businesses. Additionally, Yonhap reports, that the country’s “Big Three” shipyards plan to reduce their workforces by 20,000 employees by 2018; and their combined docks will shrink to 24. The government also plans to create a new company in 2017 (yet unnamed) to take over containerships from ailing companies and lease them back to help shipping companies stay afloat.
Louisiana Cat, Reser ve, L A, has become the first Caterpillar dealership in the Americas to reach all requirements for training and technical sales and support to make it a Gold Level Dealer for the full line of Cat Propulsion equipment. The expansion of the marine product line—to include the entire marine propulsion systems package—will help maximize uptime, and reduce operating costs for offshore platform service and towing vessels, inland river cargo and transportation vessels, and fishing and government vessels. “We are excited to be the first dealer in the Americas to achieve this goal through qualification in a rigorous technical sales and support training over the last year and a half,” says Louisiana Cat’s Mike Jennings.
November 2016 // Marine Log 15