Tsuneishi and Samsung Heavy Industries Agree on Comprehensive Partnership First Japan-Korea Alliance in the Shipbuilding Industry

March 10, 2004


Tsuneishi Corporation
Samsung Heavy Industries Co., Ltd.

Tsuneishi Corporation (Head Office: 1083 Tsuneishi, Numakuma-cho, Numakuma, Hiroshima, President: Katsushige Kambara) and Samsung Heavy Industries Co, Ltd (Head Office: Kangnam-Gu, Seoul, Korea, President & CEO: Jing-Wan Kim) came to a basic agreement yesterday on the establishment of a comprehensive partnership to promote cooperation utilizing both their management resources, in an effort to enhance their international competitiveness in the shipbuilding industry.

To promote both companies' development, Tsuneishi and Samsung Heavy Industries have since 1993 been building a relationship based on exchanges of opinions in various fields. Aiming to boost mutual corporate profits, the companies agreed to cooperate comprehensively in production, procurement, management, and overseas business, among other fields, in the segments of construction and repair of general ships and vessels for ocean development.

The Chinese economy is gathering steam, powered by the development of industries that are beginning to flourish under the nation's recent more open policies. China has seen gains in productivity in a widening range of industrial products in response to this economic growth, and is establishing its position as a 'global factory'. Trade with Europe, the US and Asian countries has become more active than ever, while demand for marine transportation centering on China is showing a sharp rise.
The growing demand for marine transportation has generated new markets in the shipbuilding industry, giving related companies the chance to expand and grow in this newly favorable economic climate. In the shipping market, where competition between the shipbuilding companies of Japan, South Korea and China is increasingly fierce, the establishment of strong borderless ties that enable the full utilization of both companies' management resources is set to dramatically strengthen our international competitiveness and make a robust contribution to our growth.