Special Report - The status and vision of the domestic maritime plant design engineering industry - The brains of marine plant industry, 'Marine plant design engineering industries' - For marine plant design engineering, the country's leading shipbuilding companies such as Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding, in fact, are lacking a very basic design and detailed design. Accordingly, it is totally dependent on a foreign professional design and engineering companies to cause loss of the billions of dollars each year. Because all design engineering are very associated with marine plant project engineering design process and cost decision, it should be seriously treated among marine plant industry development policy. In a state of the fierce pursuit of China, it¡¯s considered that to strengthen competitiveness and to develop the engineering skills would be main solution to recover the competition. (Marine and Shipbuilding Monthly 2011)

The status and vision of the domestic maritime plant design engineering industry
The brains of marine plant industry, 'Marine plant design engineering industries'

For marine plant design engineering, the country's leading shipbuilding companies such as Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding, in fact, are lacking a very basic design and detailed design.
Accordingly, it is totally dependent on a foreign professional design and engineering companies to cause loss of the billions of dollars each year. Because all design engineering are very associated with marine plant project engineering design process and cost decision, it should be seriously treated among marine plant industry development policy.
In a state of the fierce pursuit of China, it¡¯s considered that to strengthen competitiveness and to develop the engineering skills would be main solution to recover the competition.

Brain is made of a lump of unit nerve cell and covers the central nervous system of animals. It plays an important role in instinctive biological activity, almost all of the information of several organizations being gathered here in one place and to adjust the various institutions and order in the activity.
Brain is responsible to most of the movement and the behavior, and it keeps the body's homeostasis. As it were, it serves the role of keeping the heart rate, blood pressure, blood concentration and temperature constant, and plays cognition, emotion, memory and learning.
As if the brain very important to human brains, maritime plant design engineering industry performing brain role in the industry has enormous influence at both at the beginning and end of a marine plant. Of course, only in terms of price it¡¯s only about 10 to 20 percent among the total price of the marine plant, but its importance to the practical value is enormous.

Maritime plant design engineering industry which is very important, but still looking a long way is to go farther. Flowers of marine plant industry, design engineering technology can add value through further increase self-sufficiency of the world's No. 1 shipbuilding powerhouse working to make consistent phases and infrastructure, technological innovation and human resources.
We should try to seize the world's highest level to do their best to become a firmly closed door of a marine plant design engineering market.

¥°. Status of marine plant design engineering industry
1. Domestic status of marine plant design engineering industry
In marine plant industry in the world, most prominent domestic companies are represent as Samsung Heavy Industries, Hyundai Heavy Industries, Daewoo Shipbuilding, STX Shipbuilding, Hanjin Heavy Industries and the like. Among these, Samsung Heavy Industries Co. is showing nearly 70 percent market share.
The global economic recession started at the end of 2008 shipping was led to a downturn in the shipbuilding industry, and in merchant ships, the order was not made nearly. Due to these problems such as high oil prices, the offshore plant industry receives attention as a way to break recession in the shipbuilding industry, orders were fully concentrated.
Areas of focus for each company, each different, in the case of Samsung Heavy Industries is it focusing on drill ship sector, and in Daewoo Shipbuilding & Marine Engineering on LNG marine plant or Semi-Rig sector. Hyundai Heavy Industries while adapting 10 dock to Marine Plant-only dock, takes advantage of private endeavor in order.
The domestic shipbuilding /marine produces and supplies a large part of a large ocean plant from international major oils company and is leading the world market. Except small and medium-sized one, it selectively receives orders such as high-value superstructure and the super-selective FPSO more than $ 1 billion to perform the engineering, procurement, fabrication, installation and commissioning.
Due to recovery of recent economic crisis and resource development trend, it increased of the marine plant orders, and with reference to Monthly "Marine and Shipbuilding> on June 2011, it is as follows. Table 1 shows the ocean associated with drilling and treatment plant marine increased around 54%shows that some have a 54% increase.
Table 2 shows states of domestic marine plant orders investigated by Monthly "Marine and Shipbuilding¡±. Relative to 5 ships on May last year for the drill ship orders of the domestic shipbuilding industry, it achieved 15 ships in less than a year, not even the second quarter of last year that is at three times over the last year.
Therefore, if this situation persists, it is estimated that the level can surpass 30 vessels on last 2007. In addition, the subsequent order for marine plant made possible to regain the top spot that China in 2010 got accomplished, and marine plant industry is standing tall as a big fruit of the domestic shipbuilding industry.

On the other hand, marine plant EPC construction means the contract of turnkey having the range covering from the basic design to commission, and the level of Korea's marine plant design engineering is a mere toddler level for the areas of basic design and detailed design compared with developed countries.
Even three large domestic shipbuilding companies depend on foreign company which becomes a big obstacle and needs to solve the situation urgently.
Unless we bring the sectors up as soon as possible to the level of advanced countries, it¡¯ll be continued to rely on advanced engineering company. In other words, it means that we should rely on all the processes such as transport and installation instructions except the construction and manufacturing in Korea, and also, very likely on high-value equipment too.
At Table 3, we are competitive in the area of construction / production, but very poor in basic and detailed design against international counterparts, which cause difficulties to enter into the marine plant industry. We need to urgently resolve this problem.

Currently, European and U.S. secure the priority over the section of the marine industry, and Korea is estimated to have the level of 30% compared to the developed countries. Due to the low competitiveness of such a design and engineering, we are placing the service on advanced foreign companies.
Advanced international design, engineering companies and their research institutes in marine engineering technology leads research and development efforts. Particularly, in order to identify the various phenomena in extreme environments difficult to identify with the application of mathematical algorithms, it is being actively made through technological development based on testing and evaluation facility.
The world's marine plant industry is going on competition with the defense of oil and steel prices, the requirements of the stringent safety and environmental standards and new technologies.
Based on the fusion of cutting-edge IT technology and software it continues to advance and expand environmentally friendly technology to reach market trend.
Even though in some areas such as Drill ship and FPSO etc., we dominates the world market, but for other marine plant industry, United States and Europe has been dominated. In particular, it is shown to be the reality of the domestic industry that in areas of critical marine plant equipment it is stuck in a rudimentary level.
Recently in China, based on the full support of the government, marine plant industry is being emerged as the biggest variable, and the emerging industrial countries have the resources to market for some ingenious techniques for working diligently on securing the international competition becoming more intense.

¥±. Outlook for marine plant design engineering industry
1. Order trend of marine plant market
Marine plant is marine facilities needed to develop oil etc., buried at sea and the annual demand is growing rapidly according to the land resource depletion. Marine plant market is growing at 18-20 percent per year and 4,600 billion dollars in 2015 worldwide are expected to be funded.
Marine plant industry emerged as an alternative to the shipbuilding industry having close relationship with the world economy and high risk will serve as a route to escape a recession.
Suffered from global recession started in the end of 2008, domestic shipbuilders diversified their business, and rose into the prominent producer of marine plant. It¡¯s because marine plant was able to highlight domestic merits being strong in a structural body.
Unlike the shipbuilding industry, marine plant industry is showing a steady growth and is being considered as next-generation growth engine.
However, as noted earlier, also marine plant as well as merchant¡¯s fell down in prices than in the past, and with the international oil price stability and the slowing of demand to replace aging equipment, the size of marine plant is reduced to have a bunch of troubles enough to cover the merchant market

With the order of large league line and drill ship in the past five years, FPSO demand over the next five years is expected to be conducted with a large scale together with FPSO project.
If with rising oil prices, drilling activities go to the deep water, it is produced with the FPSO and the demand for facilities at the same time will increase.
In genetic coast it transports the produced crude oil through pipeline to the mainland, but if it goes to remote sea, this is impossible.
According to France's Technip, since 2011 when it increases deep water E & P activities it is expected to create the market of every year $ 6 billions (approximately 5 ships). In a large FPSO sector for deep sea, domestic shipbuilding companies have a unique competitive advantage and long-term benefits.
In marine plant market, it is expected on the market expansion of natural gas-related equipment as well as oil-related facilities such as rig and FPSO.
In case of offshore gas, from production of seabed gas to the land base of the gas transporting through the pipe and having a big gas development and transportation facility construction costs, and therefore being possible for the development of a large gas field.
However, with the development of LNG-FPSO it can be possible to directly liquefy gas produced without construction of a pipe directly to store and deliver to the vessel and therefore it is expected that small and medium-sized gas field development is to be activated. In addition, LNG-FPSO can replace the existing onshore liquefaction and storage facilities to become possible for creating a large new market.
And also, additional new markets such as LNG-FSRU are expected. LNG-FSRU take liquid natural gas from the maritime LNG, store and vaporize to send to shore as a new concept.

Shown in Figure 2, when new market is created, domestic shipbuilding companies with unique competitive advantage related to LNG production facilities are expected to have another growth momentum.
When oil prices is between 40-50 U.S. dollars per barrel, it could be seen to have been secured the economics of the oil field development in general view, and when being the prices more than $ 65, the economics of deep water field is also secured.
While, prior to the past 1980s, exploration and development investment for oil and gas were the main, since the 1980s the investment required to production is underway for a more active underway. In particular, the development of deep-sea region expands and then the demand of floating production / storage facilities has increased significantly.
With the rising natural gas prices due to rising oil prices and environmental concerns in recent years, investment for natural gas development and production has significantly increased.
Accordingly LNG-FPSO vessel of new concept appears, and is expected to lead to future large-scale investment.
According to International Maritime Organization (IMA) it¡¯s reported to reach $ 73 billion over for a floating production and storage facilities on the next five years.

2. Due to marine plant industry that order volume is expected to increase, the opportunities of the design engineering industry will be expanding?
As described above, despite a transient contraction in the global economy the maritime plant industry is expected to grow continuously. With contraction of the domestic shipbuilding industry, small and medium-sized shipyards and engineering firms are experiencing great difficulty. They existed even before, but we are likely to pioneer new industries and the government-industry co-investment with an interest should be sustained.
If particularly developing countries or underdeveloped country is difficult to do large-scale investment in social overhead capital it is expected to generate the large market by actively marketing Floating Power Plant to achieve efficient scale with relatively small investment.
As mentioned previously, maritime plant industry is expanding its applicability such as oil and gas resource development, including offshore marine eco-friendly marine energy development, ocean space utilization and development of mineral resources in the existing deep sea business area.
In addition, with the advent of LNG-FPSO and FSRU, new LNG Chain formation, and offshore green energy became commercially available, and new green growth paradigm such as maritime airport / port emergence using Mega-Float and offshore wind power are leading the future energy / logistics innovation.
As a result, a large ocean plant growth is showing high order volume, and the domestic companies awarded about 60 to 70 percent of the volumes followed by the enlargement of the design engineering industry.
However, despite the recent explosion of marine plant, design engineering market shows a kind of monopoly by a small number of specialized international enterprises, and has strong barriers to enter into and therefore, raising awareness with the high performance of contractor should not be neglected.

¥². Summary
Worldwide market for Deep Sea resources such as oil, natural gas and rare minerals is expected to grew rapidly to be 500 trillion won in 2030, more than double the current year. Knowledge Economy of Korea selected this industry as one of the six leading industries, promoting intensive technical development.
In response to this trend, recently Busan National University has been revealed the plan to establish the world's highest marine plant testing laboratories at Gyeongnam Hadong in April 2015.
Shipbuilding industrial complexes is to be erected in the area of galsaman 165,200 §³ of land, with total project cost 47.3 billion won and plans to be completed in April 2015, and after years of trial operation to the formal launch in 2016.
The world's # 1 of Shipbuilding and Marine Engineering, Korea serves more than 60% of the world's marine product manufacturing plant, but design engineering costs accounting for 10-20% of the overall cost of construction solely relies on foreign companies.
Project-based research of the Ministry of Industry and Technology Development also acts as the world¡¯s leading certificate authority for marine plant explosion fire test. In particular, it is going to hold more superior performance with state-of-the-art facilities compared to a relatively aging facilities of Europe and the United States, including wind direction and speed of natural environmental conditions.
In this business, it also will participate including Hyundai Heavy Industries, Korea 5 shipyards and equipment supplier, a governmental organization such as Korea Ocean Research and Development Institute, Korea Institute of shipbuilding materials in conjunction with the KR.
In addition, it were also signed in technology exchange agreements with general classifications around the world such as British Society, American Society, Norwegian Society and Japan Society, and the most prestigious one of the British Health and Safety Fire Test Laboratory.

¡á References
. Marine and Shipbuilding Monthly Oct, 2010
. Marine and Shipbuilding Monthly Jan, 2011
. Marine and Shipbuilding Monthly Jun, 2011
. Activation marine plant (2010 chung seung, An)

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