November 21, 2008

Hyundai Heavy forms China venture to ship steel plate

Bloomberg reported that Hyundai Heavy Industries Co will set up a shipping venture in China to transport steel plates to its yards in South Korea.

Ulsan based company said in a regulatory filing that he USD 2 million ventures with Grand China Shipping Ltd will be based in Shanghai. The partners will have equal shares in the venture.

The report added that Hyundai Heavy in September 2006 agreed to buy 20% of China's Qinguangdao Shouqin Metal Materials Co to ensure a steady supply of steel plates.

Together with units Hyundai Mipo Dockyard Co and Hyundai Samho Heavy Industries Co, Hyundai Heavy expects to use about 3.9 million tonnes of steel plates this year of which 1 million tonnes will be bought from China. The companies used 3.2 million tonnes last year of which 700,000 tonnes were from China.