Various forecasts are emerging regarding the medium-sized shipbuilder K Shipbuilding, which is on the verge of sale. There are indications that the estimated sale price will exceed 500 billion won, leading to speculation that a large company will acquire it, while the possibility of a government-created fund making the acquisition has also been raised. Within the shipbuilding industry, there are predictions that even if government funds are utilized for the acquisition, it will not be easy for a large shipbuilder to operate K Shipbuilding.
According to the shipbuilding industry on the 7th, the largest shareholder of K Shipbuilding, UAMCO and the KHI Consortium, has selected Samil as the lead manager for the sale process. In the market, HD Hyundai, Hanwha, KG, KBI, and Dongkuk Steel Mill Group are being mentioned as potential buyers.
Recently, Lee An-joo, a lawmaker from the Democratic Party of Korea, proposed a bill for support and cooperation in the U.S. shipbuilding industry, known as the "Make American Shipbuilding Great Again (MASGA) Project Support Act," raising the possibility of converting it into a maintenance, repair, and overhaul (MRO) base for U.S. military vessels.
The bill focuses on establishing specialized shipyards related to U.S. military MRO projects and warship manufacturing, involving domestic large shipbuilders such as HD Korea Shipbuilding & Offshore Engineering and Hanwha Ocean, along with the government. The acquisition funds are planned to be sourced from government grants, loans, and contributions.
There are forecasts within the shipbuilding industry that it will not be easy to operate as a U.S. Navy MRO base or acquire through government funds. Even if acquisition costs can be met, due to the labor-intensive nature of the shipbuilding industry, it will be difficult to cover operational burdens, such as workforce issues, with just the MRO business. Generally, over 3,000 personnel are required for each dock.
Although fewer personnel are involved in MRO operations compared to new construction, it may also be challenging to significantly reduce the workforce at shipyards when considering future overhauls and maintenance. Overhaul refers to the highest level of maintenance concept, restoring worn components to their original state. K Shipbuilding lacks a special ship division for military and patrol vessels, so preparing all necessary aspects for the maintenance of warships will also be needed.
A source in the shipbuilding industry noted, "Shipbuilding companies cannot aggressively expand their businesses as before. The U.S. military MRO market is not fully open yet, so it will be difficult to acquire a new shipyard based solely on that."