Samsung Heavy Industries to invest up to $13.1 million to build manufacturing facilities for tanks in Rongcheng, China
Samsung Heavy Industries Co., a leading South Korean shipbuilder, is set to resume investments in its China-based facilities while considering launching vessel repair services in Southeast Asia, according to KED Global.
The company will invest up to 18 billion won ($13.1 million) to build manufacturing facilities for tanks, which are required for very large ammonia carriers (VLACs), in Rongcheng, China, industry insiders said on Sunday.
Samsung Heavy has also liquidated two of its three affiliates in China since 2022 due to rising labor costs and low productivity. The company is poised to ramp up facility investments in China as it has accumulated shipbuilding order backlogs for three and a half years.
Samsung Heavy has also created a task force to expand its aftermarket services such as maintenance, repair and modification of vessels to meet growing global demand. The company enjoys increasing demand for aging liquefied natural gas (LNG) carrier modifications to use them as floating liquefied natural gas (FLNG) carriers, sources said.
The company is considering partnering with Southeast Asian shipbuilding companies to start aftermarket services in the region. It has repaired 100 out of 1,300 ships delivered to its clients and plans to fix more vessels.
