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HHI completes first phase localisation of offshore equipment

HHI completes first phase localisation of offshore equipment
South Korea’s Hyundai Heavy Industries (HHI) has completed the first phase of a four-year plan to localise the procurement of offshore facilities equipment and components.

The world’s largest shipbuilder has mostly been securing those equipment and components from overseas suppliers.

Since September 2014, HHI and its local supplier partners have been working on localising key equipment for offshore facilities. They have now completed developing 74 equipment and received an approval from its clients for the use of 31 items for on-going projects at HHI’s yard in Ulsan.

Under the plan, HHI will continue to work on localising a total of 151 major equipment including pressure vessels and chemical injection pumps for semi-submersible rigs and FPSO, and subsea pipelines in cooperation with the local small and medium-sized partner companies by 2018.

“Upon completion of the plan, the Ulsan-based shipbuilding company will be able to lower equipment procurement costs and improve process management for facilities, while its partners will have chances to expand into new overseas markets,” HHI said.

“The plan is a part of HHI’s long-standing shared growth policy it has been pursuing to help domestic equipment and material suppliers to develop new products, improve product quality, and enter into new markets,” it added.