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DSME: New Wave Shipbuilding

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"We work closely with key suppliers like KONGSBERG to create ground-breaking designs and products." – Mr. Young-Man Lee, Executive Vice President and CTO, DSME.

DSME shipyard - Photo courtesy DSME
Daewoo Shipbuilding & Marine Engineering Co shipyard - Photo courtesy DSME.

DSME - Daewoo Shipbuilding & Marine Engineering Co. has grown over the past three decades to become one of the three largest builders of commercial vessels and offshore structures in South Korea. By 2011, DSME will have annual turnover in excess of USD 16.7 billion until 2011, if all goes according to plan.

DSME has grown on its strengths in building complex commercial vessels and large offshore structures. Stiff competition from the other Korean yards and upstart countries like China and Vietnam force DSME to develop continuously.

Mr. Young-Man Lee, Executive Vice President and CTO at DSME, explains: "We don't hesitate to invest in our knowledge capital, both in-house and in our community. Based upon our core values – trust and passion – we work closely with key suppliers, like KONGSBERG , and customers to create ground-breaking designs and products."

Offshore boom

Photo courtesy DSME
LNG carrier - Photo courtesy DSME.

In 2006, offshore business became DSME's main business, as it was the only shipbuilder in the world to win orders worth more than USD 4 billion in offshore platforms.

DSME's next big goal in offshore structures is to win newbuilding contract for drill ships, something Lee hopes they will achieve next year. Its strategy to winning new business can best be illustrated by its success with LNG carriers.

DSME spent over five years studying LNG technologies before it started getting orders. Now, it’s a world leader in this vessel type, with more orders for the new massive L-LNG carriers than any other Korean yards. DSME has also won a prestigious contract with BW Gas for two LNG carriers that will feature an innovative dual-fuel diesel-electric propulsion system.

KONGSBERG supports a number of DSME's LNG carrier newbuildings with their automation systems. Lee says of KONGSBERG: "In general, we need more and we need it faster. We are focusing on our good relationships with sub-contractors, focusing on trust and passion. We appreciate KONGSBERG's decision to invest in its local project delivery and commissioning team."

A few facts about DSME

  • Major products: commercial vessels, offshore plants and specialty vessels.
  • Production capacity: 2.5 million CGT, or 50 commercial vessels, 10 speciality vessels and 20 to 30 offshore and onshore plants per year.
  • Workforce numbers 25,000, and 2,300 in design and R&D.
  • Sales in 2006: USD 5,809 million.
  • Order backlog (April 2007): USD 25.9 billion.

About Mr. Young-Man Lee

Executive Vice President, Daewoo Shipbuilding & Marine Engineering Co., Ltd. Mr. Lee is in charge of DSME's engineering & technology division and also a member of the board of directors of Daewoo Shipbuilding & Marine Engineering Co. Ltd.

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