A view of Hyundai Heavy Industries’ Ulsan shipyard. (Photos: HHI)

HHI President Ka Sam-hyun.

HHI President Han Young-seuk.

Hyundai Heavy Industries (HHI) said the shipbuilder set a sales target of 8.581 trillion won for 2019 and winning orders worth a cumulative $11.7 billion.

In a New Year message, HHI co-CEOs Han Young-seuk and Ka Sam-hyun said, “This year will be a significant year to determine its future.”

Reflecting HHI’s determination to return to profitability, the shipbuilder set the 2019 catchphrase as “Rise Again to the World’s Best Shipbuilding and Marine.”

CEO Han and CEO Ka expressed worry that this year is dotted with unstable factors such as lower shipbuilding prices, crude and other raw material prices, foreign exchange and interest rates amid outside and inside uncertainties. They analyzed that the sagging shipbuilding and marine industry are going through an unprecedented combination of opportunities and crises.

With continued rising raw materials costs, unit price reduction is a requisite for survival, they said, HHI will strive to enhance productivity, reduce construction period, and cut down on materials costs through structurally optimized design, engineering method and process improvement and the purchasing of strategic materials.

They said with environmental regulations of the International Maritime Organization (IMO), to be put into force next year, related markets are expected to grow remarkably, and HHI will accelerate efforts to have a head start through eco-friendly technology updates. HHI said the shipbuilder’s ground-breaking of the Global R&D Center (GRC), slated for this year, will serve as an opportunity to transform it into technology-oriented company.

HHI Focuses on Technology, Quality Upgrades

HHI Group established a foundation to make anther leap forward last year. HHI, the flagship company of the group, which grappled with a dearth of winning orders, found it relieved from the stark situation.

Subsidiaries such as Hyundai Construction Machinery and Hyundai Electric achieved performances beyond expectations last year. A smooth road is unlikely this year, however. Unstable factors such as deepening protectionist moves, foreign exchange and interest rate fluctuations still exist. HHI Group plans to minimize management uncertainties and focus on technology and quality to have a competitive edge in the global market.

 
HHI plans to concentrate eco-friendly technology upgrades prior to the enforcement of IMO’s stringent environment regulations. It means that the shipbuilder will enhance the quality of LNG ships and gas-fueled engines.

There will be also a focus on upgrading the functions of next-generation smart ships and ICT convergence products. HHI plans to maintain the supremacy of LNG carriers. It means that the shipbuilding plans to retain a growth momentum as HHI won orders to build 25 LNG carriers or 39 percent of 65 ships up for grabs for last year.

HHI plans to redouble efforts to strengthen quality. The shipbuilder set three quality goals – minimizing quality failure costs, establishing quality efforts to conform to quality standards and invigorating quality collaboration.

The reason is that an upgraded corporate culture is required to make a step forward. HHI set 2019 management tasks – building safe workplace, reducing unit prices through innovation, and communications & harmony.