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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published October 1, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Hyundai Heavy stock falls 9.6%
This, after CMA CGM said it may cancel vessel orders
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(SEOUL) Hyundai Heavy Industries Co, the world's largest shipyard, tumbled the most in eight months in Seoul trading after CMA CGM said it may cancel vessel orders as part of attempts to avoid collapse.
The shipbuilder fell 9.6 per cent, the biggest drop since Jan 15, to close at 180,000 won (S$220). Daewoo Shipbuilding & Marine Engineering Co, the world's second-largest shipyard, declined 9.5 per cent to 17,200 won.
CMA CGM, the world's third-largest container line, said on Tuesday that it will renegotiate or cancel orders as it begins talks with creditors on debt restructuring in a bid to stave off bankruptcy. Ship lines worldwide have delayed or axed vessels as slumping world trade and rising overcapacity pummel rates.
'It's a blow for Korean shipyards,' said Song Jae Hak, a Seoul-based analyst at Woori Investment & Securities Co. 'People are afraid that the CMA CGM situation may recur across the industry.'
Samsung Heavy Industries Co, the world's third-biggest shipbuilder, fell 6.2 per cent to 25,600 won. The benchmark Kospi index declined one per cent. Kexim Bank CMA CGM is in talks with European, Asian and Korean banks, it said in a statement yesterday.
Bank of Korea has US$500 million in outstanding loans to the company, according to a bank official with direct knowledge of the situation. All of the loans are backed by ships as collateral, he added.
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</TD></TR></TBODY></TABLE>CMA CGM has a fleet of 370 vessels with another 51 on order for delivery from this year to 2012, according to its website. The closely held company said that it had sales of US$15.1 billion last year.
The shipping line didn't name any shipyards in Tuesday's statement. Guillaume Foucault, a spokesman for the Marseille- based company, declined to elaborate further.
Hyundai Heavy doesn't expect a 'big impact' from CMA CGM's debt talks, and the French company hasn't scrapped any orders, spokesman Kim Ki Young said. He declined to say how many outstanding orders the yard has from the shipping line.
CMA CGM has asked Daewoo Shipbuilding to delay new vessels, Ahn Wook Hyun, a spokesman for the Seoul-based shipyard, said yesterday. The line hasn't asked to cancel any of its outstanding orders for eight vessels, he added.
Samsung Heavy hasn't been affected by the CMA CGM talks, said spokesman Yoon Jong Deuk. The line has financing in place for the four vessels it has on order at the yard, he added.
Lloyd Fonds AG said on Tuesday that it had cancelled orders for four container ships and four commodity ships. ZIM Integrated Services Ltd, a unit of Israel Corp, axed a US$220.4 million order for six container ships at Taiwan yard CSBC Corp in April.
China Cosco Holdings Co, Asia's biggest shipping company by market value, said in August it may cancel container-vessel orders after slumping to a second straight loss.
South Korean shipyards accounted for about 41 per cent of the world's total outstanding container-ship orders as of August, according to data complied by Clarkson Plc, the world's biggest shipbroker. - Bloomberg
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Hyundai Heavy stock falls 9.6%
This, after CMA CGM said it may cancel vessel orders
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Feedback</TD></TR></TBODY></TABLE>(SEOUL) Hyundai Heavy Industries Co, the world's largest shipyard, tumbled the most in eight months in Seoul trading after CMA CGM said it may cancel vessel orders as part of attempts to avoid collapse.
The shipbuilder fell 9.6 per cent, the biggest drop since Jan 15, to close at 180,000 won (S$220). Daewoo Shipbuilding & Marine Engineering Co, the world's second-largest shipyard, declined 9.5 per cent to 17,200 won.
CMA CGM, the world's third-largest container line, said on Tuesday that it will renegotiate or cancel orders as it begins talks with creditors on debt restructuring in a bid to stave off bankruptcy. Ship lines worldwide have delayed or axed vessels as slumping world trade and rising overcapacity pummel rates.
'It's a blow for Korean shipyards,' said Song Jae Hak, a Seoul-based analyst at Woori Investment & Securities Co. 'People are afraid that the CMA CGM situation may recur across the industry.'
Samsung Heavy Industries Co, the world's third-biggest shipbuilder, fell 6.2 per cent to 25,600 won. The benchmark Kospi index declined one per cent. Kexim Bank CMA CGM is in talks with European, Asian and Korean banks, it said in a statement yesterday.
Bank of Korea has US$500 million in outstanding loans to the company, according to a bank official with direct knowledge of the situation. All of the loans are backed by ships as collateral, he added.
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The shipping line didn't name any shipyards in Tuesday's statement. Guillaume Foucault, a spokesman for the Marseille- based company, declined to elaborate further.
Hyundai Heavy doesn't expect a 'big impact' from CMA CGM's debt talks, and the French company hasn't scrapped any orders, spokesman Kim Ki Young said. He declined to say how many outstanding orders the yard has from the shipping line.
CMA CGM has asked Daewoo Shipbuilding to delay new vessels, Ahn Wook Hyun, a spokesman for the Seoul-based shipyard, said yesterday. The line hasn't asked to cancel any of its outstanding orders for eight vessels, he added.
Samsung Heavy hasn't been affected by the CMA CGM talks, said spokesman Yoon Jong Deuk. The line has financing in place for the four vessels it has on order at the yard, he added.
Lloyd Fonds AG said on Tuesday that it had cancelled orders for four container ships and four commodity ships. ZIM Integrated Services Ltd, a unit of Israel Corp, axed a US$220.4 million order for six container ships at Taiwan yard CSBC Corp in April.
China Cosco Holdings Co, Asia's biggest shipping company by market value, said in August it may cancel container-vessel orders after slumping to a second straight loss.
South Korean shipyards accounted for about 41 per cent of the world's total outstanding container-ship orders as of August, according to data complied by Clarkson Plc, the world's biggest shipbroker. - Bloomberg
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