Korea-US Shipbuilding Cooperation and Industry Boom Drive Full-Scale Performance Improvement at Finebustil
Published 14 Aug.2025 13:38(KST)
Finebustil Sees Strong Performance Rebound on Surge in Orders from Major Shipyards
Order Volume Expected to Grow Further Following Hyundai Steel's Suspension of Shipbuilding Structural Steel Production Line
As Korea-US shipbuilding cooperation enters a new phase with the full-scale launch of the MASGA (Make American Shipbuilding Great Again) project, and as the super-boom in shipbuilding continues along with the major benefit of Korean shipbuilders entering the US market, Finebustil, a specialized manufacturer of shipbuilding structural steel that counts major shipbuilders such as HD Hyundai and Hanwha Ocean among its key clients, is showing clear signs of performance improvement.
According to Finebustil's provisional disclosure for the second quarter of 2025, shipyard orders from HD Hyundai, Hanwha Ocean, and others have increased significantly. As a result, sales reached KRW 46.3 billion, up 88.8% from KRW 24.5 billion in the same period last year, and sales volume reached 42,400 tons, up 92% from 22,070 tons in the same period last year, indicating a full-scale recovery in performance.
A Finebustil representative stated, "To meet the surging order volume, we have switched to a two-shift system (day and night) starting in August 2025, expanding production from 9 hours a day to 14 hours a day, and are focusing on increasing production volume."
The performance improvement of Finebustil, a specialized manufacturer of shipbuilding structural steel, is expected to accelerate further, not only due to the super-boom in the Korean shipbuilding industry, but also because Hyundai Steel suspended its shipbuilding structural steel production line as part of facility rationalization measures on November 13, 2024, resulting in increased order volume for Finebustil.
A Finebustil official commented, "With the shipbuilding boom driving up product prices and the stabilization and decline of raw material prices such as iron ore, our cost competitiveness is recovering rapidly," adding, "Starting this year, we expect a significant recovery in profitability, including operating profit."
With strengthened Korea-US shipbuilding cooperation and continued orders for Korean shipbuilders expected due to the US's efforts to keep Chinese shipyards in check, Finebustil's stock price has also risen recently, trading at a price approximately 50% higher than in mid-July.
In addition, Dongil Steel Lux, an affiliate of the Fine Group like Finebustil, is expected to benefit as well, as media reports indicate that its subsidiary Daesun Shipbuilding may enter the naval vessel MRO (Maintenance, Repair, and Overhaul) sector.
The US Navy's naval vessel MRO business is known to be worth about KRW 20 trillion per year. Dongil Steel Lux holds the largest stake in the consortium that acquired Daesun Shipbuilding. According to recent disclosures, Daesun Shipbuilding posted sales of KRW 73.12 billion and an operating loss of KRW 2.94 billion in the first quarter of 2024, but in the first quarter of 2025, it recorded sales of KRW 70.27 billion and an operating profit of KRW 1.21 billion, showing improved performance year-on-year, with even better results expected in the second quarter.
It is hoped that, alongside the Korean shipbuilding industry's entry into the new US market, cooperation and win-win partnerships between large shipyards and small and medium-sized related companies will continue to expand.
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