Despite booming demand, tiny Singapore faces a tough time ahead defending one of its few heavy industries, building offshore drilling rigs.
The reason is familiar: rising Chinese competition.
Singapore’s rig makers, Keppel Corp.’s BN4.SG +0.48% Keppel Offshore and Marine unit and SembCorp Marine Ltd., S51.SG 0.00% which both posted lower second-quarter profits, are responding by trying to move upmarket, with equipment that can drill for oil and gas at greater depths and more extreme conditions than the shallow-water rigs they’ve specialized in. But this is a sector where South Korean yards are well-established and China is a growing presence.
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Eric Yep, The Wall Street Journal via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/u0JRdQ2tvUE/
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