HANJIN HEAVY INDUSTRIES

HHIC’s Yeongdo Shipyard accelerates business normalization by winning a big contract

- Won the bid to build four (4) bulk carriers (180,000t) and slated to sign another contract for additional four vessels
- HHIC’s Yeongdo Shipyard signed contract to build 12 ships this year only (US 600 million dollar)

HHIC’s Yeongdo Shipyard announced that it won USD 220 million orders to build four (4) bulk carriers of 180,000 DWT from Greece and Turkey.

It is also scheduled to sign another contract to build four (4) additional ships.
Including the contract to build four (4) bituminous coal carriers signed with Hyundai Merchant Marine (MMM) in July,
Yeongdo Shipyard has won contracts to build 12 ships in total this year, which is worthy of nearly US 600 million dollars.
As a result, the Yeongdo Dockyard will be fully operated until 2015.

The industry anticipates that HHIC’s Yeongdo Shipyard may emerge from its 4-year business slump and accelerate its business normalization by winning the big contracts.
In addition, it appears that that they would gradually handle a problem of unpaid leave. After all, the management and labor now can concentrate on business normalization.

Meanwhile, HHIC’s Subic Shipyard signed a contract to build five ultra large container ships such as 11,000TEU and 9,000TEU.
In addition, ten (10) middle and large sized container vessels are expected to be contracted from European ship owners next month.

This year's 37 orders are expected in HHIC’s Subic Shipyard coming to US 2.2 billion dollars, equivalent to approximately three year work.
As a result, it would be able to strengthen its ground as a global shipyard.

It appears that HHIC has been able to accomplish this success (US 2.8 billion dollars in both Yeongdo & Subic dockyards) thanks to its company-wide cost-cutting efforts
to win contracts against Chinese and big domestic shipbuilding companies as well as global shipbuilding marketing showing signs of gradual recovery.

An official from HHIC said “All our management and employees have worked really hard to stay competitive and win orders against shipbuilding companies around the globe.”
He added, “We all are very confident that we would definitely normalize business operations and regain our reputation as the world’s leading shipbuilder.”

Empowered by great success this year, HHIC has set a goal of winning US 2.9 billion dollar contracts next year
(USD 1.2 billion for Yeongdo Shipyard, USD 1.7 billion for Subic Shipyard).
If things go as planned, the company would be able to fully normalize its business by 2015.