Daewoo Shipbuilding & Marine Engineering announced plans to establish a global business network covering the Middle East, the Caspian Sea region and West Africa, and build production facilities in those areas. The company has set a long-term target to raise consolidated annual sales, including overseas operations, up to 20 trillion won by 2015 from 4.5 trillion won projected for this year. To achieve the goal, Daewoo plans to inject 2 trillion won in new business sectors such as logistics and energy and in setting up global networks.
It was stated that the goal to enter the targeted regions is expected to be achieved within next two to three years as the company is getting enquiries of expression of interest for joint projects from local partners. To enter the higher margin luxurious cruise shipbuilding business, Daewoo is now considering a plan to acquire shipyards in Western Europe and to build a production facility in China around 2012. The existing shipyard in Geoje Island will be reserved as a Research and Development (R&D) center for development of state-of-the-art ships, and the company is not planning any facility build-ups.