Marine Log

October 11, 2006

DSME sets $15.6billion revenues goal

Daewoo Shipbuilding & Marine Engineering Co. is shooting for annual revenues of 15 trillion won (US$15.6 billion) by 2011 reports Korea's Yonhap news agency.

DSME plans to expand facilities to produce 75 vessels worth 8 trillion won and five offshore platforms worth 3 trillion won annually within the next five years.

DSME plans to log 20 trillion won in annual sales by 2015, and aims to secure the biggest market share in the area of offshore facilities and the highest profitability in shipbuilding worldwide.

To achieve this, the company plans to add production bases and logistics centers overseas and invest in new operations through mergers and acquisitions.

Separately, DSME has released more details on one of its most recent international ventures.

On Sep. 24th, DSME signed an Operations and Management Services Agreement with the Government of the Sultanate of Oman to operate a ship repair dock in Duqm, Oman.

The agreement states that DSME will manage the dock for the next 10 years sharing its industrial know-how accumulated over the past 30 years including providing advisory, managerial and operational services. DSME will oversee construction work and equipment purchasing. After completion of the construction phase, DSME will provide a management team to operate and manage the facility.

The new repair yard will be one of the biggest in the region, equipped with major facilities including two 410 m dry docks, making repair work on VLCCs or L-LNGCs possible. A 30 0m floating dock will also be installed.

DSME says the Duqm region development project coincides well with DSME's mid to long-term vision of building a global network.