South Korean shipbuilders should actively keep up with global trend to maintain its leading place in market share, especially when Chinese shipbuilding industry is looking for holding various new competitiveness as well as low labor cost, such as technology, quality, efficiency, cost reduction, etc.
Shanghai branch of the Korea International Trade Association reported, "China's major ship-related indices would drop, while export for high-value ship would grow."
China's proportional of export for high-value vessel, marine equipment and offshore facility would increase afterwards.
Amid depressed newbuilding ordering in the world, China's newbuilding delivery, new order and orderbook would decline due to strong Yenminbi and hike in labor costs.
On the other hand, Chinese shipbuilders threaten as they expand into high-value market, with strong support from the government.
China's world largest capacity, restructuring, M&As, governmental support for offshore facility, etc., would be threatening enough to South Korean yards.
Some Chinese shipbuilders have diversified their business into wind power, coal mine machinery, railroad/subway facility, automization logistics equipment, etc., in order to minimize shipbuilding industry's cyclical risks.
Also, they promote strategized cooperation with shipowners, look for a new way to make development in offshore plant and high-end vessel, etc, as well as work hard to build a firm managerial environment by standardizing debt/capital management, etc.
Recently, with support from the government, China's trading of offshore facilities increased to $5bn, taking 10% of global market.
Head of Shanghai branch Kim Kyong-Yong emphasized, "Korean shipbuilders should keep working hard to enhance production efficiency, cut cost, develop IT, etc.,"