Merger of Yards in South Korea, China Will Control Global Shipbuilding

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Mega mergers in South Korea and China will create two behemoths controlling around 46% of the global market among the world’s top 10 shipyards

By Costas Paris Aug. 1, 2019 6:00 am ET Mega shipyard mergers in South Korea and China are forging a new reality in the industrial sector that underpins the global shipping industry.

Shipbuilding is a vital part of the economies in Asian countries such as South Korea and China, employing hundreds of thousands of people. It is one of South Korea’s flagship industries, accounting for 7% of the nation’s exports and 5% of employment. “The market share, especially on some ship types, is totally dominant,” said Basil Karatzas, chief executive of New York-based Karatzas Marine Advisors & Co. “That’s bad news for owners that now have less than a handful of yards to choose from and they can no longer play them against each other.”

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