Hyundai makes first mainland shipbuilding shift

With all signs indicating China is set to displace South Korea as the world's top shipbuilding power, Hyundai Corp announced its first move into mainland shipbuilding with the acquisition of a 51% stake in Qingdao-based Lingshan Ship Engineering for US$7.4m. Hyundai said it aims to upgrade the yard to build small- to medium-sized tankers and bulkers. Officials cited cheap labor and China's determination to move up from being the world's third-ranked shipbuilder as reasons for making the move.