Domestic shipbuilders, who have accumulated years' worth of workloads, are expected to focus on selective orders for high-value-added vessels with hopes for new orders this year. In particular, expectations are rising for the possibility of orders for liquefied natural gas (LNG) carriers and military ships following the inauguration of Donald Trump's second administration.
According to the shipbuilding industry on the 9th, HD Hyundai Heavy Industries announced on the 6th that it has set its annual order target for the shipbuilding and institutional sector at $18.05 billion (approximately 26.26 trillion won). This is a 33.7% increase compared to last year’s target ($13.5 billion). HD Hyundai Heavy Industries is projected to have exceeded its target by achieving $20.56 billion (approximately 29.91 trillion won) in orders last year.
All subsidiaries under HD Hyundai have raised their order targets for this year. HD Hyundai Heavy Industries set its target at $9.751 billion (approximately 14.18 trillion won), which is 35% higher than last year's target. HD Hyundai Mipo set its target at $3.8 billion (approximately 5.53 trillion won), a 45% increase, while HD Hyundai Samho proposed a target of $4.5 billion (approximately 6.54 trillion won), which is 18% higher.
Many forecast that the global ship order volume will decrease compared to the previous year. However, as environmental regulations on ships tighten and the replacement period for aging vessels approaches, demand for eco-friendly dual-fuel vessels is expected to increase. The three companies under HD Hyundai have already exceeded their annual targets since last October due to continued orders for eco-friendly dual-fuel vessels. HD Hyundai Heavy Industries anticipates success this year from methanol-powered ships, ammonia carriers, and liquefied natural gas (LNG) and methanol-powered container ships.
Samsung Heavy Industries will announce its provisional results from last year along with its management goals for this year next month. Of the 36 vessels ordered last year, 31 were eco-friendly fuel ships such as LNG, ammonia, and ethane, indicating significant achievement in the construction of high-value-added vessels.
Samsung Heavy Industries secured a total of $7.3 billion (approximately 10.62 trillion won) in orders last year, covering 75% of its target ($9.7 billion). It has been reported that delays in the contract for the floating liquefied natural gas production, storage, and offloading facility (FLNG) in southern Mozambique have prevented it from fully achieving its goal. FLNG refers to natural gas production bases capable of handling exploration, extraction, refining, liquefaction, transportation, and storage of natural gas at sea.
A Samsung Heavy Industries official said, "The final contract for Coral Sul FLNG 2 has been delayed due to local geopolitical instability, but we expect it to be concluded this year."
Hanwha Ocean, having already secured three years' worth of workloads, has stated that it intends to focus on selective orders based on revenue rather than quantity. Hanwha Ocean is committed to expanding its maintenance, repair, and overhaul (MRO) business for non-combat ships in the U.S., indicating an increase in orders for the defense sector. Hanwha Ocean recorded a total of $8.98 billion (approximately 13.07 trillion won) in orders last year, making it the highest among individual shipbuilders. It has decided not to disclose its order target for this year, similar to last year.
If Donald Trump's second administration in the United States embarks on energy export projects, the demand for LNG carrier construction could increase further. In this case, related demand may converge on South Korean shipbuilders, who are allies. The president-elect, Trump, mentioned cooperation in the MRO sector during a call with President Yoon Suk-yeol shortly after his election in November last year and noted on the 6th of this month (local time) that "we can utilize allied countries for naval ship construction."