Hyundai Reduces Shipyard Investment

19 November 2009 (Last Updated November 19th, 2009 18:30)

Hyundai Heavy Industries has reduced its shipyard investments by 10%, according to its third quarter report. The world’s largest shipbuilder had allocated $865m for the Gunsan Shipyard construction project a year ago, which has come down to $75.9m at the end of third quarter. <

Hyundai Heavy Industries has reduced its shipyard investments by 10%, according to its third quarter report.

The world’s largest shipbuilder had allocated $865m for the Gunsan Shipyard construction project a year ago, which has come down to $75.9m at the end of third quarter.

The completion of the new yard is also expected to be delayed until the first quarter of 2010 from the original schedule of December 2009.

The company’s investment in the block factory expansion project has decreased to $7.6m from a nearly $8.6m a year ago.

Investment in expanding large marine engine manufacturing system fell to $31m from about $33.6m a year earlier.

According to industry analysts, the company is slowing investment in facilities for the downturn in shipbuilding market and Hyundai needs money for acquisition of the 70% stake in Hyundai Oilbank.