HONG KONG (Bloomberg) — Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipyard, expects to receive fewer orders this year as the global recession weakens demand for vessels.

Orders may exceed $10 billion compared with $11.8 billion in 2008, the Seoul-based company said in a regulatory filing. The shipyard plans to invest about 500 billion won ($380 million) this year, it said.

The worst global financial crisis since the Great Depression has dried up capital markets, making it difficult for shipping lines to get loans for new vessels and pay for the ones they've ordered. Daewoo Shipbuilding and bigger rival Hyundai Heavy Industries Co. missed their 2008 order targets.

"The order target set for this year will not be easy to achieve given the global economic situation," Nam Sang Tae, president of Daewoo Shipbuilding, said in a New Year's speech to employees, according to a copy e-mailed to reporters.

Daewoo Shipbuilding gained 2.8 percent to close at 18,150 won in Seoul. The stock has fallen 63 percent in the past year, compared with a 37 percent decline in South Korea's Kospi index.

The shipyard expects 2009 sales to reach more than 13 trillion won, it said in the statement. Sales last year may exceed its target of a record 9.9 trillion won, it said without giving more details.

The company will add a 900-ton crane and its fourth floating dock this year to increase output, Nam said. Daewoo Shipbuilding expects demand for offshore units, including drill ships and floating production and storage vessels, to increase this year, he said.