HANJIN HEAVY INDUSTRIES

- Doubles the order amount from the previous year and solidifies the vault with major business contracts in succession
- Expected to enhance business achievements, ‘leading in construction, supporting shipbuilding’

- Seoul Office of HJSC

Thanks to a series of consecutive orders this year, HJ Shipbuilding & Construction (HJSC) achieved a remarkable feat by securing KRW 2 trillion in orders in the first half alone. The multinational constructor has also solidified its position with a KRW 7.3 trillion order backlog spanning the construction and shipbuilding sectors.

The company continued to thrive in the construction sector, maintaining a strong presence in traditional public projects this year. They began with the decommissioning of Kipower Units 4, 5, and 6 and went on to secure a series of contracts across civil engineering, architecture, and plant construction. Notable projects included the Namyangju Yangjeong Subway Station District, Tongil-ro Bypass Construction, Section 3 of the Suseo-Gwangju Double-track Railway Construction, the National Museum of Korean Literature, and the construction of the infectious disease hospital for the Honam region (Chosun University Hospital), and Section 2 of the second-phase construction of the Busan-Jinhae Free Economic Zone (BJFEZ).

Since the beginning of this month, the South Korean constructor has secured new contracts totaling KRW 1 trillion in the public construction sector alone, which includes significant projects like the GTX-B construction project (Yongsan-Sangbong) and the Saemangeum Airport Construction Project.

There has also been significant progress in urban improvement projects. Demonstrating a notable growth trend, the nation’s leading construction company secured over KRW 300 billion in orders in the first half of this year alone, including five redevelopment projects in cities like Busan and Bucheon. Over the past three years, they have consistently achieved an annual growth in order intake of over 20%.

Despite challenges in the construction industry stemming from project financing (PF) failures, the national construction leader has strategically emphasized redevelopment and reconstruction housing projects. These projects provide stable earnings potential without the risks associated with PF ventures. This strategic focus positions them well for future performance improvement.

In the shipbuilding sector, the global shipbuilder achieved a milestone on June 20 by securing a KRW 600 billion contract to build four 7,900 TEU eco-friendly container carriers (with an option for two additional vessels) for a European shipping company. This accomplishment highlights their robust position in the market recovery and advanced eco-friendly shipbuilding technology, which has generated increased interest and inquiries from global shipping companies for new orders. This positive outlook bodes well for their future prospects.

An official from HJSC remarked, “Despite challenging conditions such as economic slowdown and rising raw material costs, our proactive bidding strategy has significantly boosted our order intake compared to last year.” Continuing, he emphasized, “We are concentrating on specialized areas within our core businesses of construction and shipbuilding to secure high-quality, profitable projects. This approach is designed to enhance our corporate value through a virtuous cycle.”