HANJIN HEAVY INDUSTRIES

- Achieved approximately KRW 4.7 trillion in orders in 2024, marking the highest performance since its founding
- Strong performances in MRO and public construction projects, driving order backlog past KRW 9.3 trillion

HJ Shipbuilding & Construction (HJSC) recorded its highest-ever annual order value last year. The company’s strong performance in its two main sectors, shipbuilding and construction, has fueled optimism for continued growth and improved results.

In the shipbuilding sector, the multinational shipbuilder secured orders worth KRW 1.75 trillion, reflecting a 150% increase compared to 2022 and a remarkable 300% rise from 2023. Meanwhile, in the construction sector, the company recorded KRW 1.3 trillion in public construction projects, KRW 800 billion in urban redevelopment projects, and KRW 840 billion from private and overseas ventures.

In its specialized shipbuilding sector, the global shipbuilding leader capitalized on its strong MRO (maintenance, repair, and overhaul) capabilities to deliver impressive results. The company secured contracts for upgrading the performance of 18 guided-missile patrol boats for the ROK Navy, along with major overhauls for the amphibious assault ship Dokdo and high-speed landing craft (LSF-II), reinforcing its leadership in the MRO market. Additionally, HJSC won new construction projects, including a 3,000-ton patrol vessel and four high-speed patrol boats for the Korea Coast Guard, bringing in a total of KRW 550.4 billion in orders.

The South Korean shipbuilder has also made notable progress in the merchant shipping sector. By focusing on developing eco-friendly vessels with decarbonization technologies, HJSC has secured orders for eight 7,900 TEU eco-friendly container ships, valued at KRW 1.2 trillion, from several European shipowners. All these vessels share a similar design, which is expected to enhance productivity and profitability through repetitive construction.

The KRW 1.75 trillion in orders secured last year in both the merchant and special-purpose shipbuilding sectors marks the highest-ever performance for Yeongdo Shipyard in its history.

In the public construction sector, which ranked 8th in the industry with approximately KRW 700 billion in orders the previous year, HJSC nearly doubled its performance, securing around KRW 1.3 trillion in orders last year. Key projects such as the Saemangeum International Airport and the GTX-B Line 3-2 Section propelled the company to 3rd place in the public construction market. In November, the global constructor further strengthened its position by winning a KRW 280 billion contract for the Cebu New Port in the Philippines, expanding its international portfolio.

HJSC's significant progress in urban redevelopment projects is also worth mentioning. By utilizing its housing brand “Haemoro,” the company has successfully targeted niche markets as a mid-sized construction firm. This strategy led to the securing of seven housing redevelopment projects totaling KRW 800 billion in cities such as Busan, Bucheon, and Namyangju. From 2020 to last year, the South Korean construction company has shown impressive growth, with order intake increasing by approximately 20% annually.

With new orders increasing across both major business sectors, the order backlog has also seen a significant rise. As of the end of December last year, the company’s total order backlog across its shipbuilding and construction divisions reached KRW 9.3 trillion.

The global company credits its increase in orders last year to the reinforcement of responsible management within each business division and its proactive strategy in securing new contracts, which helped pave the way for its resurgence.

An official from HJSC said, “Thanks to our capabilities in every division and business sector of both shipbuilding and construction, we were able to achieve balanced order results and exceed our goals.” He continued, “This year, we will continue to enhance our competitiveness through continuous change and innovation, and unite the efforts of all our members to ensure the company can take a new leap forward.”