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.