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Hyundai Heavy Industries (HHI) in brief

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Hyundai Group was established in 1947 as a construction company and moved into shipbuilding only in 1970 with an order for two crude tankers while the shipyard was not yet existing.

In 1972, Hyundai started to build a shipyard in Dusan and two years later, in 1974, the two tankers were delivered.

Then Hyundai expanded from shipbuilding and construction to heavy industries in all areas up to create Hyundai Heavy Industries as an integrated company.

In 2002, Hyundai Heavy Industries was separated from Hyundai Group in order to keep focus and expansion in the heavy industries. 

Since then Hyundai Heavy Industries (HHI) became the largest shipyard in the world and developed its own Floating Liquefied Natural Gas (FLNG) design.

Today HHI is organized around seven business divisions with different weight in respect with total HHI sales 2011:

 – Offshore and Engineering 6.9%

 – Shipbuilding 34.2%

 – Industrial Plant and Engineering 5.0%

 – Electro – Electric Systems 4.5%

 – Construction Equipment 7.9%

 – Engine and Machinery 4.0%

 – Green Energy 0.7%

In addition to its engineering and shipbuilding activities, HHI owns and operates the Hyundai Oilbank refinery contributing for 35% to the HHI sales in 2011.

This refinery produces 390,000 b/d and supply 2,400 gas station in South Korea.

On the top of the industrial activities, HHI Financial Services brings the last 1.3% to the total revenues.

Hyundai Heavy Industries founds its continuous growth on the “Hyundai Spirit” to motivate its 24,400 employees to accomplish things theoretically and scientifically impossible.

Hyundai  Heavy Industries Key Figures

 – 2011 Revenues: $46,5 billion

 – 2010 Revenues: $32,4 billion

 – 2011 Earnings: $2,3 billion

 – 2010 Earnings: $3,9 billion

 Hyundai Projects and Business Highlights

On the next four years, HHI is targeting an operating profit margin exceeding 10% by placing profitability at the center of the sales and business strategy.

To reach this goal, HHI defined five strategic drivers:

 – Optimize Business Structure in improving competitiveness and profitability

 – Maximize Global Competitiveness in setting activities and headquarters in major markets

 – Develop Advanced Technologies in strengthening research and development to take global market leadership

 – Build Efficient Production Systems in maximizing existing assets efficiency and improving quality

 – Create Innovative Business Practices in outsourcing low-added value operations and increasing flexibility.

Among the key projects related to the oil and gas and petrochemical industry, Hyundai Heavy Industries booked:

 – A $620 million drillship for ultra deepwater up to 12,000 meter depth for Rowan Companies to be delivered in 2015

 – The world largest SPAR hull in consortium with Technip for Statoil Aasta Hansteen project expected in operations in 2015

Onshore, Hyundai Heavy Industries is very active in Saudi Arabia and UAE where it is in competition for $ multi-billion engineering, procurement and construction (EPC) contracts in:

 Saudi Aramco Riyadh Clean Fuel Refinery

 – Saudi Aramco Jizan Refinery

 – Saudi Aramco Ras Tanura Refinery Clean Fuel and Aromatics

 – Adma-Opco Umm al-Lulu EPC-2 and Sarb EPC-4

Offshore,Hyundai Heavy Industries is targeting:

 Chevron Gendalo – Gehem FPUs package

 – Total Martin Linge Deck package

In few years Hyundai Heavy Industries emerged from the role of sub-contractor to become a key player among the engineering companies chasing EPC contracts.

After this significant growth, Hyundai Heavy Industries intends to consolidate its global market leadership on the next four years in focusing on profitability.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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