HANJIN HEAVY INDUSTRIES

- Contracts signed for two 180K bulk carriers in January 2010
- Subic Shipyard’s competitiveness proven by winning newbuilding
   orders in the middle of an economic downturn

HHIC-Phil, (Hanjin Heavy Industries and Construction–Philippines Inc.,) announced today that it received orders for two 180K bulk carriers from Taiwanese ship owners. The contracts were signed on Jan. 10, 2010.

HHIC-Phil was able to win the contracts in the midst of a severe economic downturn in the shipping and shipbuilding industry. The 180,000 ton bulk carriers were ordered by Hsin Chien Marine of Taiwan and will be built in Subic, Philippines. Delivery of the first vessel is expected in September of 2011.

HHIC-Phil pointed out that Subic Shipyard won the contracts because its market competitiveness was beginning to be recognized following the completion and full operation of Dock 6.

Subic Shipyard covers an area of 2.5 million ㎡, which is more than 10 times the size of Yeongdo Shipyard. With its many geographical advantages, competitive workforce, and high-tech facilities enabling a 24 hour operation, Subic Shipyard has proven its ability to gain orders even after the newbuilding price has dropped dramatically.

HHIC’s plan is to become the world’s shipbuilding leader by promoting Subic Shipyard as its main production facility that can compete against Chinese shipyards. Yeongdo shipyard will be modernized into a production facility specialized for building high value added vessels.

One official at HHIC-Phil said, “the true value of Subic Shipyard and its unrivaled cost competitiveness stands out in the depression of the shipbuilding market. We will gradually expand our shipbuilding capacity to include high value added vessels and ultra large vessels while pursuing qualitative growth.”

Subic Shipyard has 2 docks, each measuring 370 meters and 550 meters in length. Each dock is equipped with 2 super-sized goliath cranes. It also has 3.3km of quay and its assembly yards are over 1,000 meters long. It has an order backlog of over two and a half years.