HHI's Drive
to Make Shipbuilding
Tech-Intensive One

Aims to raise sales to $19.5 billion by 2010

Hyundai Heavy Industries (HHI) has declared a long-term plan calling for revving up sales to $19.5 billion by 2010.
Under the vision "Global Leader ― HHI Exploring the Future,"HHI is striving to take the lead in the global heavy industry, secure world best capabilities in the field, and continue to improve customer satisfaction, the reward for employees and the corporate value for shareholders by inheriting and developing the late founder Chung Ju-yung's founding spirit.
Under the long-term plan, HHI aims to see sales surging an average annual rate of 12.8 percent ― a range of 10 percent in the shipbuilding sector in a mature stage and more than 13.8 percent in such non-shipbuilding sectors as engine, plant, electric and electronics.
HHI aims to become the top 500 corporations designated by the Fortune magazine and global top 10. The company targets to post $19.5 billion in sales, three times the current level with the goal of being listed among the top 500 corporations designated by the Fortune magazine and Global
Top 5 in the global heavy industry in 2010.
The company plans to lower the shipbuilding division's share in sales from the current 45 percent and concentrate on fostering such divisions as engine, environment, machinery and plant to ensure a balanced development of all divisions.
HHI is striving to make the shipbuilding division a technology-intensive one in design, shipbuilding and other processes to develop economically viable ships and focus on technological innovations to secure a competitive edge in the global market in terms of price.
HHI plans to make aggressive investments into R&D, automation and computerization sectors since quite high-level safety and precision will serve not only as an engine behind the development and application of the computer industry related to the computerization of design, production and management, but also as a foundation to enter new industries, including aerospace industry and marine development.
The shipbuilding division plans to realize top-notch competitive edge and develop leading technologies and make a working environment safe and worthwhile to become the global top 10 company. To this end, the division plans to secure top-notch technologies to build strategic ships while improving production via integrated information system and developing the designs of such next-generation ships as PLNG, LNG-FPSO, FSRI and CNG.
CONTINUOUS R&D OUTLAY ― HHI's 12 products have been designated as world-class ones since 2001. The business and technology development divisions have made concerted efforts to achieve a target of raising the number of its world-class products to 30 by the year 2010. Pursuant to a strategy of developing market-oriented optimum technologies, the technology development division plans to take the following steps during the year 2007 to develop leading core technologies needed for realizing its target.
First, HHI has been implementing five core tasks, including the development of mainstay products into world-class ones,
an upgrade of core technologies, top-notch production technology, development of new products and new technology and exploration of new businesses. Second, the business and technology development divisions have strengthened collaboration as they have been operated such task forces as the technology policy committee, joint workshops on the establishment of technology policies, the technology development committee and the production technology consulting committee. Third, HHI has been striving to improve investment efficiency by establishing calculation guideline for saving production costs through technology development. Fourth, the company has made diverse efforts to secure domestically and international gifted manpower, while operating programs to cultivate employees into top-class ones. Fifth, HHI has overseas research institutes in the United States and Hungary, and it has forged cooperative relationships with domestic and foreign institutions to advance technologies and develop new technologies.
HHI aims to land new shipbuilding orders worth $18.99 billion during 2007, down from $18.1 billion in 2006.
The year 2006 was a stellar year for HHI which has achieved its new accomplishments, showing off a reputation as Korea's world top shipbuilding powerhouse. The three ships built by HHI were listed as the world's "excellent vessels, achieving a feat for a record of 24th consecutive year since 1983 when HHI captured the global No. 1 position in terms of the landed ships.
The 9,500 TEU-class Cosco Guangzhou, the largest containership ever, the 82,000 square meter Berge Nantong, a super-size LPG tanker, and the Promitheas, the 116,000-ton chemical tanker, all built by HHI, were praised as the "2006 Year of Ship"by Maritime Reporter, Marine Log and Naval Architect, respectively.
Last September, HHI received an order to build offshore oil production facilities worth $1.6 billion from Abu Dhabi Marine Operating CO, the subsidiary of the state-run Abu Dhabi Oil Company of United Arab Emirates,
the world's largest of offshore oil projects in value and scale recorded ever by a single company. The project involves the construction of three fixed platforms of 40,000 tons, subsea pipelines and bridges offshore. It will be completed by 2010 and produce 300,000 barrels of oil and 1 billion cubic feet of natural gas per day. The Um Shaif project is not only the largest offshore oil production facilities but also the fist case to award whole project to a foreign company, thus helping HHI secure a bridgehead in entering the Middle Eastern country.
The Korean shipbuilding giant landed an order for eight 11,400TEU containerships with its long-time client, CMA-CGM in France last September. The order, valued at $1.2 billion, is the largest new shipbuilding order as a single contract in the world. The ships will be equipped with the world's largest 98,000bhp marine engines and sail at a speed of 24.7m in depth and be delivered from mid 2009 to mid 2010. The order is significant as it demonstrates CMA-CGM's trust in HHI's technology and capability.
The ship owner, based in France, has already ordered 17 ships from HHI, some of which have been delivered and are operating on the line, while others are under construction at HHI's yard.
HHI has successfully completed the construction and load-out of two units of ultra-huge LNG tanks for Adriatic LNG Terminal on Nov. 6, 2006. The project, priced at $110 million, built and installed two units of LNG tanks for Adriatic LNG Terminal, constructed for the first time in the world. nw

HHI Vice Chairman-CEO Min Keh-sik

HHI President Choi Kil-seon

The Promitheas, a 116,000-ton chemical tanker, built by HHI

The 9,500 TEU-class Cosco Guangzhou, the largest containership ever in the world, built by HHI

The 82,000 square meter Berge Nantong, a super-size LPG tanker

A containership ordered by CMA-CGM in France.

HHI officials celebrate the offshore construction of an LPG tanker