HHI sets new orderbook target of $23bn in 2015

Challenged by unprofitable business and the recent strike by its shipyard workers, Kwon said the company needs to recover its competitiveness through internal changes and innovations.

“We are ushering in the New Year with a heavy sense of responsibility after battling through numerous adversities and changes last year,” Kwon said in a statement in a New Year address. “In 2015, we must turn in a profit to lay the foundation for renewed growth.”

In addition to the $22.95bn orderbook value target, HHI is also aiming for sales of KRW24.33trn ($21.9bn) this year. The company did not give a breakdown how much of the target would come from shipbuilding, offshore and heavy plant equipment.

In the nine months ended 30 September 2014, the South Korean shipbuilder recorded a whopping net loss of KRW1.46trn due mainly to lower shipbuilding contract prices and higher operating costs.

The shipbuilder’s Ulsan yard was also hit by a series of partial strikes and HHI went through 71 rounds of labour-management negotiations since June last year before reaching a tentative wage deal on 31 December 2014.

“Production facilities and workers are the most valued assets of HHI, and operation thereof the barometer of our competitiveness,” Kwon said, adding that breaking away from a bureaucratic corporate culture is also important for the company.

“The business environmenht is getting increasingly unfavourable, and a number of challenges are lurking in front of us. Yet, that should not discourage us from making progress,” he commented.