HHI Plan to Triple Revenue by 2015

Hyundai Heavy Industries (HHI) plans diversification to reach $90 billion revenue in three years time

The world’s biggest shipbuilding company, plans to achieve 100 trillion won or some $90 billion revenue in 2015 by diversifying its business portfolio. This ambitious management target comes as HHI celebrates its 40th anniversary this year, having started out in the shipbuilding business in 1972.

HHI has key business divisions spanning shipping, plants and shipbuilding to engine equipment and green energy. They have built over 100 million tons of ships over the shipyard’s 40-year history. No other shipbuilding company in the world has ever built more, delivering a total of 1,805 diverse types of ship, ranging from drilling vessels, liquefied natural gas or liquefied petroleum gas carriers and container ships to submarines and naval ships, for more than 280 owners in 49 different countries.

In a congratulatory message to employees, HHI CEO Lee Jae-sung said the shipbuilding titan regards this year as another starting point for the next 40 years and asked employees to come up with more ideas for sustainable corporate growth since the company is being challenged to effectively overcome uncertain macro-economic conditions and the profitability of key businesses is highly-dependent upon economic situations.

Asian shipyards are bracing for challenging times ahead, as current oil prices increase operating costs, a glut of containerships and tankers are putting heavy downward pressure on freight rates, and new-build ship financing is becoming increasingly more complex.