HANJIN HEAVY INDUSTRIES

HHIC & Hyundai Merchant Marinesign(HMM) an agreement to build four (4) bulk carriers

- For long-term transport of bituminous coal for HMM… a total of KRW 900 billion in sales starting 2015
- HHIC’s Yeongdo Shipyard’s first order in five (5) years… contribution to the promotion of local economy

On July 10, HHIC & HMM signed an agreement to build four bituminous coal carriers (150,000t) at LOTTE Hotel Busan with the attendance of nearly 70 officials and guests including President & CEO of HMM Yoo C.K., President & CEO of HHIC Choi Sung-moon, National Assembly Member Kim Moo-sung, President of Busan Chamber of Commerce & Industry Cho Sung-je and Mayor of Yeongdo-gu Office Eo Yoon-tae.

The measurement of four 150,000 DWT capesize bulkers ordered is 273m in length and 46m in width.

HMM will acquire one (1) vessel from HHIC in 2015 and three (3) vessels in 2016 and deploy them to transport steaming coal in long term for Korea Southern Power (KOSPO), Korea South East Power (KOSEP), Korea Western Power (KOWEPO) and Korea Middle Land Power (KOMIPO).

The contract period lasts 15 to 18 years for the shipment of bituminous coal from Australia and Canada to Korea. HMM is expected to make gross freight earnings of about KRW 900 billion in years ahead with the four vessels.

The vessels are set to be built by HHIC’s Yeongdo Shipyard. The merchant ship order from HMM is the first splendid achievement HHIC made in five years, which is likely to greatly help normalize the shipyard operation and revitalize regional economy.

At the signing ceremony, President Yoo C.K. of HMM said, “We look forward to this new shipbuilding deal of a little help to HHIC in hardship and to Yeongdo’s regional economic development. We have no doubt that this deal will mark a turning point for new development of HMM and HHIC.”

“This is the first order HHIC won in five years as a result of our persistent efforts paid to normalization of the shipyard despite of hardship in shipbuilding slump,” said Choi Sung-moon, President of HHIC. He continued, “Taking this opportunity as a turning point, we will make our best efforts to contribute to development of regional economy and national industries.”

Meanwhile, HHIC Labor Union leader Kim Sang-wook said that they would build and deliver perfect vessels by the agreed date at the ceremony. Since last year, the Labor Union has sent a letter and asked help to local commercial & industrial authorities to win the bid for the construction of bulk carriers.