HANJIN HEAVY INDUSTRIES

- Won the contract for four 5,500 TEU-class container ships; an order for merchant ships in six (6) years
- Successfully reentered the merchant shipbuilding market; pulls the trigger for early business normalization

(CHARLOTTE SCHULTE, Charlotte Schulte, a container ship of the same class built by HHIC)

HANJIN Heavy Industries & Construction (HHIC) made a new start by closing the deal for merchant ships. The global shipbuilder announced that it had reentered the market by signing a deal with a European commercial shipping firm for four 5,500 TEU-class container ships worth a total of US 270 million dollars. It is the first order for a merchant ship since the M&A.

The South Korean shipbuilding company has won the order for a general cargo ship, not for a naval or special-purpose ship, for the first time in 6 years since 2015. Ever since a voluntary deal had been signed with creditors in 2016, the company has been focusing on special ships such as naval ships, government vessels and research ships to devote its resources to what it does best under unfavorable market situations.

Fortunately, however, shipbuilding industry has recently shown a sign of revival around the globe. With increase in new orders for merchant ships, HHIC has prepared to reenter the market through the development of the latest ships and eco-friendly technologies in the belief that it is already highly competitive in technology, quality, lead time and productivity.

HANJIN Heavy Industries has prepared to re-enter the market by using the most recent ships and eco-friendly technologies, based on the belief that it maintained a strong level of competitiveness in terms of technology, quality, delivery, and profitability.

The contracted vessels also are the newest 5,500 TEU eco-friendly container ships specially designed to reduce greenhouse gas emissions and improve energy savings.

Reconfirming its global competitiveness in mid-sized container ships with this contract, HHIC pulled the trigger for business normalization. In particular, the company closed the M&A deal and won the contract for the construction of 3 eco-friendly hybrid national fishery guidance supervision vessels last month. 

It has also reorganized its departments and recruited talents to increase the order for merchant vessels. Since the company is currently in negotiation with multiple ship owners, it is anticipated to hear some good news soon. The global shipbuilder has reorganized its shipbuilding division and proven its excellence in merchant ships by winning this contract for 4 container ships. 

HHIC plans to focus on LNG & LPG ships, product oil & chemical tankers and Aframax crude-oil carriers as well as mid-sized container ships to strengthen its mid- and long-term competitiveness in shipbuilding and expand markets by reinforcing business portfolios. 

An official from HHIC said, “With this first order for merchant ships since the M&A deal, we have confirmed our competitiveness, establishing the ground for early business normalization.” He continued, “We are going to lay the groundwork for sustainable growth in the merchant ship market through aggressive sales promotion.”