South Korea is set to take on global shipbuilding in a big way, thanks to the recent merger of Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. The new company will now control roughly 20 percent of the global market for new ships and more than 50 percent of the market for new liquefied natural gas carriers, according to an article in the Wall Street Journal. The merger comes at an opportune time, as stricter marine pollution rules have led to rising demand for LNG carriers. According to a senior Korean official involved in the merger, “The target now is to create a yard facility that will dominate ship orders, especially high-margin vessels like LNG carriers, for years to come.” It’s reported that LNG ships cost around $175 million apiece; however, the profit margin for the companies that build them is nearly double that of other ships.
