Astounding Growth in Operations

STX Group announces its new 2020 Vision aimed at annual sales of 120 tln won in 2020 during its 10th anniversary celebration


Chairman Kang waves the group's flag at the 10th anniversary ceremony at STX Dalian shipyard in China on April 29

STX Group celebrated its 10th anniversary on April 29 at its Dalian Shipyard in Dalian, China, with the declaration of its 2020 Vision, aiming at being ranked the seventh largest business group in Korea.
The 10th anniversary vision unveiled at the STX Dalian Shipyard, with some 1,000 local officials, guests and the group's leading executives in attendance, pledged that the group will post 120 trillion won in annual turnovers by 2020, backed up by strategies to make STX Offshore and Shipbuilding, its major affiliate, a top global concern, maximize the group's effective management, establish a management system for the group and secure new growth engines.
Chairman Kang Duk-soo said in his speech, "We will achieve our aim to record 120 trillion won in annual sales in order to become a super-class global concern with everyone in the group doing their best through initiative and a challenging spirit." He continued, "We should not forget in the process of our second jump in our operation the strengthening of partnerships with cooperative firms for shared growth in the true sense of the word and do our best to fulfill our corporate social responsibility to create jobs." Kang said, "We should daringly forget out past performances and forge ahead with a new resolution to prepare for our future." He said the group's main growth engines have been shipbuilding and marine structure up until now, but they will focus on energy and natural resources from now on to sustain operations and grow. The chairman said the group will have to set its strategies according to each nation in which it operates and will operate in the future and explore the core areas of their natural resources to the extent that the group" total annual turnover would reach 30 trillion won in the sector in the next 10 years with an operating profit of 2.4 trillion won.
The group's STX Energy, STX Solar and STX Windpower were launched recently to engage in operations in Iraq and Canada, among other countries. They have been operating in Canada to explore for natural gas and minerals, while many Korean companies are engaged in exploration operations in the Middle East and Africa.
Kang also said the group is always open for M&As, stressing that not undertaking M&As is like not doing business for the group. The market and the kind of business will determine whether to go for M&As or build new plants, he said. The chairman also said the group will expand its overseas operations more intensely from now on, adding that the group's domestic ranking is not important, and he would not like to use a big conglomerate or large firm. "It is important to rank high in global terms in our own fields of endeavor,"Kang said.
The group held its 10th anniversary celebration at its Dalian Shipyard, signaling the importance of its operational base in northern China. The group started building the shipyard in Dalian in 2006 on 5.5 million square meters of land, investing some 1.7 trillion won, to become a part of the group's global shipbuilding network along with its Jinhae shipyard in Korea at its center and STX Europe heading the group's European operation, enabling the group's shipbuilding sector to produce a variety of ships from general cargo ships, passenger ships, marine structures and naval vessels. The group also operates a shipping company, produces ship engines and builds ships, a core reason for the group's resounding success after only a decade in business.
Officials of the group firmly denied rumors that it is faced with fund problems, especially in its construction sector.
Chairman Kang took over Ssangyong Heavy Industries and renamed it STX Engine, then took over a number of companies through M&As including Daedong Shipbuilding (STX Shipbuilding) and Pan Ocean Shipping (STX Pan Ocean). The group's M&As did not stop at domestic firms, but also extended to overseas. In 2007, the group took over Aker Yards, the second largest cruise ship builder in the world, and renamed it STX Europe in what was the largest M&A ever in the shipbuilding sector. Through a series of M&As, the group was able to have affiliates in four major industries such as shipbuilding, merchant marine and trade, plant construction and energy and its total annual sales jumped to 32 trillion won from 26.5 billion won in 2001 and total assets climbed to 26 trillion won from 439.1 billion won in 2001. nw

A typical container vessel that STX Offshore and Shipbuilding Co. is close to sign an order for 10 of them with an option for 10 more with Seaspan Container Shipping Co. of Canada.
















Photo on Courtesy of STX