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Vago denies MSC-DSME link
John McLaughlin
April 18, 2008

MSC Cruises president Pier Francesco Vago denied today that the company was actively helping South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering break into the cruise ship construction business.

Responding to an article in Milan-based Corriere della Sera, which described the move as designed to counter an emerging alliance between Aker Yards and Fincantieri, Mr Vago said "of course we are talking to Daewoo.

"We have had a relationship with them on the cargo side for many years. But are we helping them get into building cruiseships, offering technical support and so on. No, we are not. This is just imagination"

At the same time, Mr Vago reiterated the company’s long-held belief that Asian shipyards would eventually move successfully into cruise shipbuilding, and that MSC would welcome such a development.

"All the South Korean yards are asking about cruise shipbuilding," he said. "It is no secret that the big three have opened up cruise divisions and are looking at getting what information they can, from me and from others. There are plenty of rumours around, that Samsung is talking to Royal Caribbean, for instance.

He described their eventual success as "a logical evolution as they upgrade their knowhow and technology to build more complex ships. But it will take a few years. They are not there yet. And we are nowhere near placing an order."

When they do get there, however, MSC will happily go east for its newbuildings. "Globalisation is happening. Every industry is shifting in response to economics and labour costs. And if the Koreans offer a ship at a price that is 20% lower, of course we will buy. National considerations will not come into it."

MSC Cruises has talked about buying Korean before. With Fincantieri all but a house builder for Carnival, Aker’s purchase of Chantiers de l’Atlantique represented an alarmingly narrowing of MSC’s shipbuilding choices.

For Mr Vago, a possible link-up between Aker and Fincantieri would be one step too far. "It would create a complete monopoly. And since European law forbids that, it would also be illegal. Under today’s rules, it would not go through."

In the meantime, Mr Vago said the company was considering further orders from Aker, whose yard in St. Nazaire has been a steady supplier for the company.

MSC currently has three ships on order there, including the 133,500-gt Fantasia due later this year and two more ships by 2010. Mr Vago added that he anticipated further orders "for more than one vessel, hopefully before the end of this year."

Lloyd's List

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Originally posted by Frosty 4:
I am not a fan of Korean products, Especially their cars. Daewoo tried to make inroads here with their cars and failed.
Korean ship builders may be OK for cargo ships but for cruise ships?? I don't think so. Do we need a rookie cruise ship builder?
BTW do you know that Zenith(TV maker) is owned by LG. The Zenith brand name is all that really exists today as all their products are made by LG.in Korea.
F4

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Korean shipbuilders are not OK for cargo ships. Korean shipbuilders are downright fantastic for cargo ships. They have been building them for 30+ years and they are every bit as good as a ship built in Europe or Japan. A Korean built cargo ship will have crew accomodations every bit as good as passenger accomodations on cruise ships. Korea would not be the world's no. 1 ship builder if their products wern't good.

And don't forget, every yard was a rookie at building cruise ships at one time. Meyer Werft didn't deliver their first until 1986 and Fincantieri delivered their first in 1990.

And Hyundai-Kia is doing very well in the US, where it has a factory. It recent built one in Europe as well and has started producing an entirely European-designed-and-built car.

And then you have LG and Samsung, which do very well in electronics. LG and Philips have a joint venture making LCD panels, as well as Sony and Samsung. A lot of people consider Samsung to be the leading electronics manufacturer in the world now.

And a lot of Korean-branded products aren't even made in Korea - too expensive! The cheap stuff mostly comes from China now.

As for a "rookie" cruise ship builder - well, everyone has to start somewhere! It was once a rookie builder of all other kinds of ships too, but now it is a world leader.

Korea has certainly proven itself to be a leading high-tech industrial country in the past decade or two. Right now I think the biggest problem as far as cruising is concerned is that most of the suppliers involved in building cruise ships are located in Europe - but this could change.