As Korean large shipbuilders are aggressively winning orders for offshore plant, it is suggested that fitting companies are taking advantage of ordering boom this year and they are expected to grow in sizes and improve profitability.
Analyst Kwak Min-Jeong at BS Investment & Securities of Korea explained, “As for pipe-fitting industry, there was a higher ratio of carbon steel products with lower profitability, particularly used for Pertochemical Plant, however as shipbuilders are increasingly winning offshore plant orders, high-value products, such as STS and Alloy, are taking a larger product ratio that the improvement of ASP and profitability is anticipated.”
Accordingly, total contract value of domestic fitting companies is prospected to be around KRW 134.1bn ($118m), up by 24% from last year.
As domestic builders’ contracts are extending into an offshore sector amid expanding deep-sea development, led particularly by oil majors in Europe, the US and etc., the demand for high-value products is expected to increase further going forward.  
Kwak said, “Fitting takes around 20% of total equipment revenue for drillship and FPSO which is higher than other equipment, thus domestic fitting companies are likely to see accelerating growth from now on.”