November 22, 2008

STX Shipbuilding to increase capacity by 20% in 2008

Bloomberg reported that Europe's largest shipyard STX Shipbuilding Co is planning to raise capacity at its South Korean yards by 20% in 2008 after adding a second floating dock to meet demand for new vessels.

Mr Kang Ssang Won senior VP of STX Shipbuilding told reporters that it would spend KRW 142.6 billion (USD 135 million) to build the new dock on the south coast the yards in Busan and Jinhae will be able to handle 60 ships as compared with 50 in 2007.

Mr Kang added that “We are trying to become a world leader in shipbuilding. We want to be in markets where we believe there will be need for new vessels.''

Mr Lee Ki Yeon executive VP at unit STX Heavy Industries Co said that “STX Shipbuilding will focus on building Very Large Crude Carriers, the largest of their type and vessels to carry liquefied natural gas at Jinhae, while focusing on smaller ships at Dalian.”