CEO Score Daily

Samsung Heavy Industries runs until the end of the year… Securing work and reinforcing technology’total strength’

Successfully won orders for 19 LNG carriers this year… Focus on enhancing competitiveness in the eco-friendly ship market

LNG carrier built by Samsung Heavy Industries.

Samsung Heavy Industries (CEO Jeong Jin-taek) is rapidly raising the target amount by showing the back feeling of winning orders at the end of the year. While it is analyzed that orders for large-scale global projects such as Qatar and Mozambique have been in earnest, Samsung Heavy Industries is also focusing on securing related technologies to reinforce the competitiveness of eco-friendly liquefied natural gas (LNG).

According to industry sources on the 28th, Samsung Heavy Industries won 8 LNG carrier orders over the past three days from the 21st to the 23rd. The total amount of orders during this period is worth 1.5 billion dollars (about 1.63 trillion won). This year’s cumulative order performance was $5.5 billion (about 620 trillion won), reaching 65.5% of the order goal (8.4 billion dollars).

The industry believes that the recent orders were due to the French energy company Total’s Mozambique LNG project. Together with Samsung Heavy Industries, Korea Offshore & Shipbuilding also won orders for nine LNG carriers from the 21st to the 23rd, and the total amount of orders for these shipbuilders over three days reached 3.4 trillion won.

Samsung Heavy Industries’ cumulative order performance was only $1.1 billion until October, but the order target achieved sharply increased due to the rush of orders in November and December. In November, Samsung Heavy Industries launched a’jackpot’, including supplying ship blocks worth $2.5 billion, and received additional orders for two LNG carriers.

Samsung Heavy Industries’ order backlog has also increased from $18.6 billion earlier this year to $22.2 billion as of December. Orders were sluggish due to delays in orders due to Corona 19 in the first half, but succeeded in expanding work thanks to the’order rally’ in the second half.

LNG carriers account for about half of the current order backlog ($10.4 billion). Samsung Heavy Industries has won orders for high-value-added LNG carriers, which are three times more expensive than bulk carriers of the same size, in 2018 and 2019, respectively, followed by 19 orders so far this year.

Samsung Heavy Industries is concentrating on securing related technologies to further strengthen its competitiveness in the eco-friendly ship market. Samsung Heavy Industries has developed a’painting VR (virtual reality) education and training system’ for the application of eco-friendly paints, and is implementing them in earnest at the Geoje shipyard.

Painting work is an important process that determines ship quality, such as corrosion prevention, but it has been difficult to nurture professional manpower because there are not enough opportunities to practice. The painting VR system is a simulator that allows users to directly experience eco-friendly paint painting work in a 3D virtual space and evaluate skills.

Samsung Heavy Industries has been working hard to develop eco-friendly paints such as solvent-free and water-soluble. Solvent-free paint was applied to LNG carriers for the first time in the world in 2018, and water-soluble paint was applied to solid ships this year, leading the way in leading eco-friendly painting technology.

Samsung Heavy Industries’ self-developed LNG reliquefaction system for low-pressure engines (X-DF) obtained’X-Reli’ from the US classification system, ABS, for detailed design certification (DDA). Reliquefaction is a technology that liquefies the LNG boil-off gas (BOG) generated in the cargo hold of LNG carriers, stores them in the cargo hold, and preserves the cargo volume without loss, and is expected to further increase the competitiveness of LNG carrier orders.

An official from Samsung Heavy Industries said, “The market suffered from a slump due to the Corona 19 pendemic and low oil prices this year, but the market conditions are gradually improving in the second half.” He said, “We will do our best to expand orders through the development of new technologies.”

[CEO스코어데일리 / 김보배 기자 / [email protected]]

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