An Honor for Hanjin
Hanjin Heavy Industries & Construction President Hong wins gold medal for technology innovation

Hanjin Heavy Industries and Construction Co. (President Hong Soon-ik) became one of the three recipients of the Order of Industrial Merit, Gold Tower, at the 42nd Trade Day ceremony that took place at COEX in southern Seoul Nov.30.
The citation noted that the company increased its sales this year by 52 percent from last year recording $560 million by exporting containers totaling 440,000 CGT. In 2004, the shipbuilder turned out 1.9 trillion won worth of ships with net profit amounting to 26.747 billion won, up 48 percent from year earlier. The shipyard focused on the development of shipbuilding technology and its new technology made possible for the company to use only one heavy crane instead of two in deckhouse loading, saving crane rental costs. The company also developed the air pad system enabling it to load more than 1,000 tons of large blocks on ships. The company also developed a special loading technique, shortening a dock period by five months thereby increasing annual revenue by 200 billion won. The shipyard also developed the DAM shipbuilding method to be able to build super-sized container ships larger than its dock capacities.
The company tried to expand its markets, away from a heavy reliance on German shipping firms for orders and cracked European market to open its ways to deal with ship owners in growing economic centers and China. The move paid off with the company opening marketing channels with AP Moller, one of the largest shipping firms in the world and COSCO, the largest state-owned shipping firm in China and clinched orders for large containers from them. The company secured a base for getting stable orders from these shipping firms for long-time to come.
The Hanjin shipyard clinched orders for eight container ships valued at $740 million and the company, in addition, won orders from Islamic Republic of Iran Shipping Lines for four 6,500 TEU container ships valued at $420 million and has received orders for from NSC for four 5,100 TEU container ships valued at $320 million. The shipbuilder feels that the orders are efficient ones as raw material cost is high and exchange rate is low.
HHIC is known as the most competitive shipbuilding firm in the world in building 5,000-6,000 TEU container ships and it is the outcome of adapting the continual shipbuilding system and new method of building called "DAM Method."IRISL is one of the biggest shipping companies in the world, located in Iran and German NSC is a shipping company that has been growing rapidly. The company expects the orders from these two shipping companies would be a great help in expanding its marketing reach around the world.
HHIC is the history of Korean shipbuilding industry itself as it was established in Youngdo, Busan, in 1937, to build steel ships for the first time in the country. The shipyard led the Korean shipbuilding industry to top of the world as it continued to lead the industry as one of the first-class shipbuilders in the country.
The company has been regarded as one of the best in the industry in terms of technology, productivity and quality, honored as the best shipbuilder for 13 years in a row. The shipyard specializes in building middle-big containers, turning out more than 200 ships with its order books containing more than 50 ships valued at $340 million. The shipyard received orders for four 5,100 TEU container ships valued at $280 million from China Ocean Shipping Co., which is the biggest shipping company in China with a fleet of 600 ships. It was the first order from Chinese shipping company, which owed to its good reputation for building good quality ships and the shortest possible time. The company has also been engaged in building military hardware such as LPX, picket ships, landing ships, hovercraft, and submersibles, among others.
The company has block plants in Ulsan, Dadaepo and Masan.

Hong Soon-ik, president of Hanjin Heavy Industries and Construction Co.

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