Comments on: Containing the Ottoman, er, I Mean Korean Threat http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/ Korea... in Blog Format Sun, 7 Sep 2008 08:03:20 +0000 http://wordpress.org/?v=2.6.1 By: STX Completes Their Takeover of Aker Yards | The Marmot's Hole http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-182506 STX Completes Their Takeover of Aker Yards | The Marmot's Hole Mon, 18 Aug 2008 16:41:01 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-182506 [...] Back then the stock purchase was not a control investment due to STX’s desire to circumvent some EU regulations and other more emotional sensibilities. [...] [...] Back then the stock purchase was not a control investment due to STX’s desire to circumvent some EU regulations and other more emotional sensibilities. [...]

]]> By: Linkd http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130525 Linkd Fri, 18 Jan 2008 11:26:20 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130525 Correction 2: the chairman's a kang, not a han. Correction 2: the chairman’s a kang, not a han.

]]> By: Linkd http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130524 Linkd Fri, 18 Jan 2008 11:25:17 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130524 I mean N/A. And Mao's right, what looked interesting on Thursday morning looks kinda lame on Friday night. Miller Time. I mean N/A. And Mao’s right, what looked interesting on Thursday morning looks kinda lame on Friday night. Miller Time.

]]> By: Linkd http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130523 Linkd Fri, 18 Jan 2008 11:23:08 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130523 Ah, see, you're thinking that the words "Annual Report" mean the same thing to a Korean company. Those are national security secrets, buddy. You don't think they put highly sensitive information like onto the intenet, <i>in English</i>, for just anyone to read, do you? Do you know what would happen if people knew who owned Korea's corporations? The answers are: neither. Forcetec, and Han Duck soo (the company's chairman), and N/S. Ah, see, you’re thinking that the words “Annual Report” mean the same thing to a Korean company. Those are national security secrets, buddy. You don’t think they put highly sensitive information like onto the intenet, in English, for just anyone to read, do you? Do you know what would happen if people knew who owned Korea’s corporations?

The answers are: neither. Forcetec, and Han Duck soo (the company’s chairman), and N/S.

]]> By: dokdoforever http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130518 dokdoforever Fri, 18 Jan 2008 11:02:27 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130518 Was STX Daewoo Chosun, or Hyundai's shipbuilding affiliate? I checked the website, but couldn't find it. Who are the major shareholders? Did the original chaebol retain some ownership and bring in outside capital? Thanks Was STX Daewoo Chosun, or Hyundai’s shipbuilding affiliate? I checked the website, but couldn’t find it. Who are the major shareholders? Did the original chaebol retain some ownership and bring in outside capital? Thanks

]]> By: MrMao http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130516 MrMao Fri, 18 Jan 2008 10:52:48 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130516 Wow. Maybe you guys could start an international shipping blog. Wow. Maybe you guys could start an international shipping blog.

]]> By: WangKon936 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130267 WangKon936 Thu, 17 Jan 2008 06:00:22 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130267 One thing not mentioned is that this is proof that Korea isn't the only xenophobic country in respects to foreign investment. Although I do doubt that Europe will put any STX executives on trial for any legal technicalities. I see nothing sinister in STX's investment in Aker and it wasn't exactly a hostile investment anyways. The European shipbuilding industry needs new blood and STX will help Aker in the long run. Linkd, you are correct, it is the late 16th, not 15th century. That slip was embarrassing for myself, someone who's read both Turnbull and Hawley's books on the Imjin War. One thing not mentioned is that this is proof that Korea isn’t the only xenophobic country in respects to foreign investment. Although I do doubt that Europe will put any STX executives on trial for any legal technicalities.

I see nothing sinister in STX’s investment in Aker and it wasn’t exactly a hostile investment anyways. The European shipbuilding industry needs new blood and STX will help Aker in the long run.

Linkd, you are correct, it is the late 16th, not 15th century. That slip was embarrassing for myself, someone who’s read both Turnbull and Hawley’s books on the Imjin War.

]]> By: captbbq http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130214 captbbq Thu, 17 Jan 2008 02:30:05 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130214 STX executed their strategy quickly, but poorly. They did not engage the unions or the managment very well, explain thier intentions nor do anything to set the Europeans minds at ease. They just bought their stake, thought everything was done and now face an investigtion from the EU. Thats not to say that the Europeans aren'tright to be concerned, I doubt STX is looking for more capacity at the moment. With economic recessions looming in the US, we may see the end to the shipping market cycle. A full five year order book means little if the shipping companies run short of money and can't pay for them. The best way to hedge it is to invest in the cruise newbuild market or offshore market. In the long term, STX and the other Korean builders know the Chinese labor edge will win out, and they themselves will go the way of the Japanese if they can't expand into the cruise market. STX executed their strategy quickly, but poorly. They did not engage the unions or the managment very well, explain thier intentions nor do anything to set the Europeans minds at ease. They just bought their stake, thought everything was done and now face an investigtion from the EU.

Thats not to say that the Europeans aren’tright to be concerned, I doubt STX is looking for more capacity at the moment. With economic recessions looming in the US, we may see the end to the shipping market cycle. A full five year order book means little if the shipping companies run short of money and can’t pay for them. The best way to hedge it is to invest in the cruise newbuild market or offshore market.

In the long term, STX and the other Korean builders know the Chinese labor edge will win out, and they themselves will go the way of the Japanese if they can’t expand into the cruise market.

]]> By: Linkd http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130206 Linkd Thu, 17 Jan 2008 02:09:19 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130206 The stated strategy of every Korean shipbuilder now is "build high value-added ships", referring to LNG carriers and very large containerships and crude carriers, plus ocean platforms. China surpassed Korea last year as the world's largest shipbuilder by tonnage. There's no stopping it, China's on the way, starting with smaller low-tech ships of course. Korea nonetheless has real competitive advantage in shihpbuilding, so diversification makes sense. STX is even building a new yard at Dalian, China, to handle its orders for "regular" ships, letting its Jinhae and Busan yards take high-value ships. I also suspect Aker is about cruise ship knowledge acquisition, but it could be good for both companies. Aker has declining productivity, but STX has been the industry leader in boosting dock turnover. What I don't get is why STX is trumpeting about Dalian as a major part of its global strategy to be "World Best", but it says nothing about Aker. I'm writing STX's (English) annual report now - the word Aker never appears once. At $800m, it was a major investment. I believe it was the 16th century, WangKon. The stated strategy of every Korean shipbuilder now is “build high value-added ships”, referring to LNG carriers and very large containerships and crude carriers, plus ocean platforms.

China surpassed Korea last year as the world’s largest shipbuilder by tonnage. There’s no stopping it, China’s on the way, starting with smaller low-tech ships of course. Korea nonetheless has real competitive advantage in shihpbuilding, so diversification makes sense. STX is even building a new yard at Dalian, China, to handle its orders for “regular” ships, letting its Jinhae and Busan yards take high-value ships.

I also suspect Aker is about cruise ship knowledge acquisition, but it could be good for both companies. Aker has declining productivity, but STX has been the industry leader in boosting dock turnover. What I don’t get is why STX is trumpeting about Dalian as a major part of its global strategy to be “World Best”, but it says nothing about Aker. I’m writing STX’s (English) annual report now - the word Aker never appears once. At $800m, it was a major investment.

I believe it was the 16th century, WangKon.

]]> By: Thirsty http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130200 Thirsty Thu, 17 Jan 2008 01:36:07 +0000 http://www.rjkoehler.com/2008/01/17/containing-the-ottoman-er-i-mean-korean-threat/#comment-130200 I forgot to add that although my assumption above would protect the profit of STX against the Chinese the prices that STX would be quoting would be less than those of the European shipyards. Hence the current concerns. I forgot to add that although my assumption above would protect the profit of STX against the Chinese the prices that STX would be quoting would be less than those of the European shipyards. Hence the current concerns.

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