Tough Time for Shipbuilders – Dockyard Chairman
Shipbuilders in Asia are facing difficulties in surviving and some have decided to close their businesses, Chairman of the Colombo Dockyard PLC (CDPLC), Hideaki Tanaka stated in the Company’s year 2020 annual report.
“All companies are struggling under the overwhelming impact of the COVID-19 pandemic and shipbuilders are currently facing severe pricing competitions. However, CDPLC has successfully secured two new projects from European owners as a result of our focused marketing strategy,” he stated.
“We consider this a tremendous success as it is a testimony of our capability and stature in world markets. Being awarded these projects in CLV places CDPLC at the forefront of the industry and catches the attention of ship-owners around the world. Our partners and clients have repeatedly appreciated the entire team’s high technical level and quality on various occasions,” he added. He also stated that the company will remain focused on the light at the end of the tunnel – growing their presence in the CLV market, adopting the latest technology and enhancing the skills of the workforce by leveraging on knowledge transfer and best practices from their Japanese partners.
He also stated that global scenario played out in the global ship repair industry as well, as most yards struggled for survival.
Market competition too was extremely dire throughout the year. Nevertheless, the global vaccination drives provide hope to the global economy and the sector. While it is undeniable that shipbuilders are facing a very difficult situation, at the same time, if they can survive through this most challenging period, they will likely be in an ideal position to seize new opportunities as they emerge.
“The business of shipbuilding has always been cyclical in nature and we, as a company, have a strong balance sheet to tide over the crisis,” he stated.