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  • At the MOU signing ceremony, Chung Ki-sun, Executive Vice President of Corporate Planning Office of HHI is shaking hands with Ali Al Harbi, CEO of Bahri.
    Hyundai Heavy Industries Teams up with Bahri to Develop Smart Ship Technology 2017.05.08
    Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, announced today that it signed a memorandum of understanding (MOU) on establishing a partnership in the smart ship sector with the National Shipping Company of Saudi Arabia (Bahri). The signing ceremony of the MOU was attended by Chung Ki-sun, Executive Vice President of Corporate Planning Office of HHI, An Kwang-hean, CEO of Hyundai Global Service, and Ali Al Harbi, CEO of Bahri. Under the MOU, the two companies will jointly develop smart ship solutions and apply them to ships operated by Bahri that currently operates 37 VLCC. Smart ship technology is a system that helps ships’ efficient operation by using information and communication technology (ICT) and big data. HHI developed the smart ship technology in 2011 for the first time in the world and has applied the system to about 300 ships it delivered so far. Hyundai Global Service that was split from HHI in December last year will take the lead in developing the technology that will allow ship owners remotely monitor and control a ship’s machinery status including engines and generators, and informs repair status and period in advance. Chung Ki-sun said, “The MOU is significant in that HHI and Bahri, leaders in the global shipbuilding and shipping sector, are teamed up with in preparation of Fourth Industrial Revolution era. We will exert our efforts to lead our respective markets by creating synergy of our shipbuilding expertise and Bahri’s fleet management know-how.” HHI and Bahri have long been close business partners. Bahri has order a total of 34 ships to HHI Group so far and the two companies are currently closely cooperating in developing King Salman Global Maritime Industries Complex in Saudi Arabia.
  • Hyundai Heavy Industries Posts Five Consecutive Quarterly Profits of 618.7 Billion Won 2017.04.27
    Hyundai Heavy Industries Posts Five Consecutive Quarterly Profits of 618.7 Billion Won   Hyundai Heavy Industries (HHI) issued a public disclosure of its 1Q 2017 consolidated earnings today.   According to a regulatory filing, during the January-March period HHI racked up 10.0756 trillion won in consolidated sales while consolidated operating income stood at 618.7 billion won, 90.3% up from last year’s comparable period, posting profits for five straight quarters.   HHI mainly attributes the whooping quarterly operating profit increase to 127.1 billion won operating profits from HHI’s Shipbuilding Division which is 251% up from the first three months last year. The strong earnings of shipbuilding business were attributable to an increased building volume of high value-added ships that HHI has competitive edge on, stabilization of manufacturing processes, and cost reduction efforts. Offshore & Engineering Division and Engine & Machinery Division post 94 billion won of profits thanks to an optimized operation of HHI’s Offshore Yard and material cost cut efforts for engine parts while Electro & Electric Systems, Construction Equipment and Robotics Division reported 107.6 billion won of profits with continued efforts to reduce material costs.   Hyundai Oilbank and other affiliates also played a role in reporting strong earnings with 350 billion won income even with a drop in refining margins and sales.   An HHI official said, “We have been active in improving profitability and fiscal health with preemptive and comprehensive restructuring measures since 2014. With five consecutive quarterly profits, we will redouble our efforts to continue to report stable profits with technology and quality-oriented management.”   Meanwhile, HHI Group netted 39 ships worth $2.3 billion in the first four months this year, which is its largest ship orders for the comparable period in three years.   Despite a dearth of new orders in the global shipbuilding market, HHI Group was capable of winning the huge orders on the back of its competitive edge on eco-friendly shipbuilding capabilities and healthier fiscal soundness over its competitors.     *1Q 2017 Consolidated Earnings of HHI   Remarks             1Q 2017                   4Q 2016                   Change                 1Q 2016   Sales             10.0756 trillion won     10.3427 trillion won      -2.5%              10.2728 trillion won   Operating Profits            618.7 billion won        437.7 billion won          41.4%                 325.2 billion won   Net Profits      462.3 billion won       -314.5 billion won    Returned to Profit      244.5 billion won
  • Hyundai Heavy Industries Group Posts Largest Ship Orders in 3 Years 2017.04.26
    Hyundai Heavy Industries (HHI) Group, the world’s largest shipbuilding group, announced today that it won 39 ships worth $2.3 billion for January – April period, which is the largest ship orders for the comparable period in three years. HHI Group won 18 ships worth $900 million in April alone. Since the orders include options exercisable by owners to order additional same or similar class vessels, the total orders in April will amount to 31 ships worth $1.5 billion. Considering Hyundai Heavy Industries (HHI) is now in the final negotiating stage for additional three ships and Hyundai Mipo Dockyard (HMD) for two more vessels, and an array of  other shipbuilding inquiries HHI Group is receiving lately, HHI Group expects more orders to come in May and afterwards. Despite a dearth of new orders in the global shipbuilding market, HHI Group was capable of winning the huge orders on the back of its competitive edge on eco-friendly shipbuilding capabilities and comprehensive restructuring efforts resulting in healthier fiscal soundness over its competitors. With uncertainties in the shipbuilding lingering on, it seems natural that shipowers prefer to placing order to HHI Group that has a stronger financial status and proven track records of delivering thousands of ships on time. An official from HHI said, “With our new orders improving this year, we are receiving shipbuilding inquires doubled over the last year’s comparable period. With our competitive edge on green shipbuilding technology and fiscal health, we will continue to exert efforts to win more orders.”
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