Samsung Heavy Industries is expected to lead the other Korean shipyard, Sungdong Shipbuilding & Marine Engineering, for a minimum of five years with options for an additional three years. Samsung Heavy is working with Sungdong’s main creditor, the Export-Import Bank of Korea, to finalize the takeover details. Sungdong could be renamed Samsung Sungdong Shipbuilding & Marine Engineering.
For Samsung, which has focused on offshore, LNG and large boxships, the Sungdong acquisition would allow it to expand its product mix by offering more off-the-shelf commercial ship types – a useful diversification in an offshore era -Build a serious hole in Samsung’s bottom line.
The move is also very much in line with Seoul’s drive to reduce the number of Korean shipbuilding companies.
Sungdong graduated from log building to ship about a decade ago, pioneered agriculture, and became one of the top 10 shipyards in the world before difficult times came.