ID :
69495
Wed, 07/08/2009 - 14:27
Auther :
Shortlink :
https://oananews.org//node/69495
The shortlink copeid
S. Korean firms' industrial plant orders nosedive in H1
By Lee Joon-seung
SEOUL, July 8 (Yonhap) -- The number of industrial plant orders won by South Korean companies nosedived in the first half of this year due to a worldwide economic slump, the government said Wednesday.
Orders for drill ships, offshore facilities, power and petrochemical plants
plunged 67.3 percent on-year to US$7.4 billion in the first six months, the
Ministry of Knowledge Economy said.
It said the drop reflects overall uncertainties in the global market that have
forced many businesses and governments to delay placing large orders. The recent
drop in crude oil and other raw materials has also sapped the ability of resource
rich countries to divert funds to expand production of infrastructure and
industrial facilities.
In the first six months of last year, South Korea secured $22.6 billion worth of
industrial plant orders, with the total reaching $46.2 billion for the entire
year.
Industrial plant orders that stood at $8.4 billion in 2004 surpassed the $10
billion mark for the first time in 2005 and topped $40 billion levels in 2007.
The ministry said that despite an overall decrease in orders, oil-producing
Middle Eastern countries placed orders reaching $3.4 billion or 46 percent of the
total.
"This is a decrease of 54 percent compared to the year before, but lower than the
overall drop tallied for the six month period," said Kang Myung-soo, head of the
ministry's export-import division.
He pointed out that South Korean companies have been able to win orders for work
on such projects as the Karan offshore oil field in Saudi Arabia, and there has
been steady orders placed for other gas and oil projects.
The official said that orders won in Asia fell 61 percent, while those for Europe
and the Americas were down 78 percent and 93 percent, respectively.
Kang claimed the decline seen in Europe and the Americas was directly related to
a dearth of orders for value-added drill ships and floating production storage
and offloading vessels.
The ministry in charge of the country's industrial policies and investment
promotion said that for the second half it hopes to secure construction orders
for the Yanbu refinery project in Saudi Arabia, valued at $10 billion, and other
deals being pursued by energy giants like Royal Dutch Shell.
SEOUL, July 8 (Yonhap) -- The number of industrial plant orders won by South Korean companies nosedived in the first half of this year due to a worldwide economic slump, the government said Wednesday.
Orders for drill ships, offshore facilities, power and petrochemical plants
plunged 67.3 percent on-year to US$7.4 billion in the first six months, the
Ministry of Knowledge Economy said.
It said the drop reflects overall uncertainties in the global market that have
forced many businesses and governments to delay placing large orders. The recent
drop in crude oil and other raw materials has also sapped the ability of resource
rich countries to divert funds to expand production of infrastructure and
industrial facilities.
In the first six months of last year, South Korea secured $22.6 billion worth of
industrial plant orders, with the total reaching $46.2 billion for the entire
year.
Industrial plant orders that stood at $8.4 billion in 2004 surpassed the $10
billion mark for the first time in 2005 and topped $40 billion levels in 2007.
The ministry said that despite an overall decrease in orders, oil-producing
Middle Eastern countries placed orders reaching $3.4 billion or 46 percent of the
total.
"This is a decrease of 54 percent compared to the year before, but lower than the
overall drop tallied for the six month period," said Kang Myung-soo, head of the
ministry's export-import division.
He pointed out that South Korean companies have been able to win orders for work
on such projects as the Karan offshore oil field in Saudi Arabia, and there has
been steady orders placed for other gas and oil projects.
The official said that orders won in Asia fell 61 percent, while those for Europe
and the Americas were down 78 percent and 93 percent, respectively.
Kang claimed the decline seen in Europe and the Americas was directly related to
a dearth of orders for value-added drill ships and floating production storage
and offloading vessels.
The ministry in charge of the country's industrial policies and investment
promotion said that for the second half it hopes to secure construction orders
for the Yanbu refinery project in Saudi Arabia, valued at $10 billion, and other
deals being pursued by energy giants like Royal Dutch Shell.
