Hyundai Heavy Group Sets Shipbuilding Order Target at $15.9 Billion

Hyundai Group's Total Sales Target 46.6 Trillion Won
Kwon Oh-gap "Preparing for Digital Transformation... Transforming into an Advanced Shipbuilding and Energy Company"
"Will Maintain Korea's Shipbuilding Industry Status as World No.1 through Daewoo Shipbuilding Acquisition"

[Asia Economy Reporter Yu Je-hoon] Hyundai Heavy Industries Group has set the shipbuilding order target for the three shipbuilding companies at approximately $15.9 billion, similar to last year. The group's total sales target is set at 46.66 trillion KRW.

According to Hyundai Heavy Industries Group on the 3rd, the shipbuilding order target for Hyundai Heavy Industries, Hyundai Samho Heavy Industries, and Hyundai Mipo Dockyard this year is set at a total of $15.899 billion (about 18.4 trillion KRW). By affiliate, Hyundai Heavy Industries is $7.999 billion, Hyundai Samho Heavy Industries $4.25 billion, and Hyundai Mipo Dockyard $3.65 billion. This order target is similar to last year's $15.9 billion. Compared to last year's actual orders ($12 billion), it is about 32.5% higher.

Hyundai Heavy Industries Group also increased its order target by about 20% compared to the previous year last year. This was due to signs of revival in the shipbuilding industry since 2018. However, contrary to industry expectations, the global economic downturn caused by the US-China trade dispute and delays in shipowners' orders due to the International Maritime Organization (IMO) environmental regulations led to Hyundai Heavy Industries Group achieving only 76% of its order target last year.

Hyundai Heavy Industries Group explained that since the ship order demand delayed by the IMO environmental regulations is expected to enter a recovery phase this year, they decided to maintain the previous year's target level. A group official said, "This year, the market conditions are expected to improve compared to last year," adding, "Orders for ships in which Hyundai Heavy Industries has strengths, such as liquefied natural gas (LNG) carriers and liquefied petroleum gas (LPG) carriers, are increasing, and demand for LNG-powered ships is also expected to grow steadily."

Meanwhile, Kwon Oh-gap, chairman of Hyundai Heavy Industries Group, who delivered his first New Year's address as the group head, set the group's sales target at 46.66 trillion KRW this year and presented a vision of an advanced shipbuilding and energy company through 'digital transformation.'

Chairman Kwon emphasized, "Our group's goal is to become a cutting-edge shipbuilding and energy company preparing for the era of digital transformation," and added, "Developing new technologies to open the era of smart heavy industries and innovating corporate culture to support this are our core values." He also stated, "In 2022, the 50th anniversary of the group's founding, we will be reborn as a new Hyundai Heavy Industries Group of 'technology and innovation' through the establishment of a global research and development (R&D) center, and we will successfully complete the acquisition of Daewoo Shipbuilding & Marine Engineering to maintain the status of South Korea's shipbuilding industry as the world's number one."

This content was produced with the assistance of AI translation services.