Daewoo Shipbuilding & Marine Engineering Co, the world's third-biggest shipbuilder, said it will build the world's largest floating dock to accelerate production of container vessels as ship orders soar to a record.
Monumental: Daewoo Shipbuilding will spend as much as 150b won to build the 438m by 84m dock at its yard in Okpo, South Korea
The company will spend as much as 150 billion won (S$242 million) to build the 438 metre by 84 metre dock at its yard in Okpo, South Korea, Seoul-based Daewoo Shipbuilding said in a regulatory filing to the Korea Exchange yesterday.
The company is building its fourth floating dock, larger in area than five football fields, as the world's biggest shipping lines buy new carriers to move iron ore, coal and other raw materials to China and take away finished goods to Europe and the United States.
Global contracts in the shipbuilding industry in 2007 may exceed last year's record US$105.5 billion.
Floating docks are easier and less costly to dismantle than land-based yards, said Song Jae Hak, an analyst at Woori Investment & Securities Co who has a 'buy' rating on Daewoo Shipbuilding.
'The potential problem of overcapacity is something shipbuilders have to be aware of as they expand,' Mr Song said, adding that companies won't face that risk in the near term.
Daewoo Shipbuilding shares rose 3.4 per cent to 51,100 won here yesterday, paring an intraday gain of 8.1 per cent.
The new dock will be built by July 2009 and will have an annual capacity to make as many as seven vessels that can load 12,600 standard 20-foot containers. The company said on Aug 24 that it was considering the plan.
Daewoo Shipbuilding's net income in the first seven months surged almost sixfold to 190.6 billion won as sales rose 33 per cent to 3.78 trillion won.
Monumental: Daewoo Shipbuilding will spend as much as 150b won to build the 438m by 84m dock at its yard in Okpo, South Korea
The company will spend as much as 150 billion won (S$242 million) to build the 438 metre by 84 metre dock at its yard in Okpo, South Korea, Seoul-based Daewoo Shipbuilding said in a regulatory filing to the Korea Exchange yesterday.
The company is building its fourth floating dock, larger in area than five football fields, as the world's biggest shipping lines buy new carriers to move iron ore, coal and other raw materials to China and take away finished goods to Europe and the United States.
Global contracts in the shipbuilding industry in 2007 may exceed last year's record US$105.5 billion.
Floating docks are easier and less costly to dismantle than land-based yards, said Song Jae Hak, an analyst at Woori Investment & Securities Co who has a 'buy' rating on Daewoo Shipbuilding.
'The potential problem of overcapacity is something shipbuilders have to be aware of as they expand,' Mr Song said, adding that companies won't face that risk in the near term.
Daewoo Shipbuilding shares rose 3.4 per cent to 51,100 won here yesterday, paring an intraday gain of 8.1 per cent.
The new dock will be built by July 2009 and will have an annual capacity to make as many as seven vessels that can load 12,600 standard 20-foot containers. The company said on Aug 24 that it was considering the plan.
Daewoo Shipbuilding's net income in the first seven months surged almost sixfold to 190.6 billion won as sales rose 33 per cent to 3.78 trillion won.