S. KOREAN SHIPBUILDERS INVEST HEAVILY IN NEW-CONCEPT VESSELS.

SEOUL, May 3 Asia Pulse - Shipbuilders in South Korea are investing aggressively in the development of high-value-added niche models as a means to cope with an increasingly crowded market for conventional ships, industry analysts said today.

Buoyed by a record volume of orders over the past year, domestic shipyards are spending heavily on research and development for futuristic and new-concept vessels, they said.

For instance, Daewoo Shipbuilding & Marine Engineering (DSME) (KSE:42660), the world's second-largest shipbuilder after South Korean rival Hyundai Heavy Industries (HHI) (KSE:09540), is the world's sole builder of a liquefied natural gas regasification vessel (LNG-RV).

LNG-RVs are advanced LNG carriers that can convey gas through submarine pipelines to land and are valued at $30 million more than ordinary LNG vessels. DSME is planning to deliver its first LNG-RV by the end of June under a contract signed in 2001 with Belgium's Exmar N.V.

HHI is in the process of building compressed natural gas (CNG) ships through a partnership with EnerSea Transport of the United ...