HD Korea Shipbuilding & Offshore Engineering raised its 2024 order target to $18.5 billion, betting against predictions of an industry downturn. The target, while 12.1% below last year’s actual orders of $20.56 billion, marks a 33.7% jump from the previous year’s goal.
The Korean shipbuilder plans to distribute the workload across its subsidiaries, with HD Hyundai Heavy Industries taking the largest share at $9.75 billion. HD Hyundai Mipo and HD Hyundai Samho are set to handle orders worth $3.8 billion and $4.5 billion respectively.
The ambitious target comes as Korea’s Export-Import Bank warns of a 28.8% decline in global vessel orders to 42 million CGT this year. The projected industry-wide slowdown hasn’t deterred the company from pursuing its expansion strategy.
Company officials said they would focus on eco-friendly vessels while maintaining a selective approach to preserve profit margins. The strategy suggests HD Korea Shipbuilding is prioritizing contract quality over volume in a potentially cooling market.
The firm’s confidence contrasts with broader market sentiment, setting up a test of whether its bet on sustained demand for environmentally compliant ships can offset the expected industry contraction.
