KHI to build LNG carriers abroad

Kawasaki Heavy Industries (KHI) is planning to construct LNG carriers abroad, as the company attempts to lower costs and increase its market share.

With present currency levels, the company’s Chinese ventures are more cost competitive than Korean shipyards, Akio Murakami, head of KHI’s shipbuilding and offshore division said in an interview.

LNG carriers

Murakami explained: “Our Chinese venture, Nacks, has built a variety of vessels so far, and LNG and LPG carriers are the only are that has yet to be handled. Once we get the first contract and deliver a good vessel, many orders will follow.”

The company estimates that costs at its Chinese facilities are as much as 20% lower than at Korean shipyards.

KHI’s Chinese venture, China Ocean Shipping Group Co., currently builds large-sized bulkers and very large crude carriers in Nantong, near Shanghai. However, LNG carriers are only constructed at the company’s shipyard in Sakaide, on the southern Japanese island of Shikoku.

Edited from various sources by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/25062014/khi_to_build_lng_carriers_abroad_849/