Page 32: of Maritime Reporter Magazine (February 1998)

Resilience In The Face Of Adversity by David Tinsley, technical editor

Having demonstrated considerable fortitude in withstand- ing an intensified competitive onslaught over recent years,

Japan's shipbuilding industry is hoping that South Korea will not put even greater emphasis on exports as part of its drive to overcome financial crisis.

Japanese yards wholeheartedly embraced technological ini- tiatives in a determined bid to raise productivity at a time when they were most seriously disadvantaged by the strength of the Yen.

Rising newbuilding demand over a period of improvement in the currency relationship enabled the industry in Japan to realize the steady gains in efficiency resulting from earlier commitments to new systems and improved organization.

A distinct leaning toward standardized output in a general merchant shipbuilding context has meant that the effect of, and the yield from, capital expenditure and modernization has been optimized by batch or series production. The down- side of a shipyard-led emphasis on a standard specification is the premium that has to be paid by an owner for any measure of tailoring. The upside is efficient contractual performance and build quality at a competitive price.

But there are fears that the impact of South Korea's nation- al economic crisis on currency values and restructural plan- ning will be a redoubling of efforts on overseas markets.

Refund guarantees are currently perceived by some owners as a potential problem at certain yards on the peninsula, but the conclusion in recent months of a number of newbuilding deals with high-profile foreign operators demonstrates that such a view is not held in every quarter.

Coinciding with the deepening of South Korea's financial turmoil, world shipbuilding statistics issued by one authori- tative source, Lloyd's Register, pointed to the backlog of new- building work in South Korea having overhauled that of

Japan's shipbuilders.

A very high level of new contract intake, amassing to twice the amount of tonnage completed over a three-month period, saw South Korea edge above Japan in the world shipbuilding stakes in regard to total orderbook, as of September 30, 1997.

Since output is a better indicator of production and overall

Pictured is 72,000-dwt bulker Rubin Power, which is controlled by Navix Line, which has ordered SpecTec shipboard systems for its entire fleet. 34 Maritime Reporter/Engineering News