26 October 2009

Hanjin puts expansion on hold

Hanjin Subic shipyard has put its expansion plans on hold pending new ship order. The shipyard has so 29 ship orders for delivery until 2013.

Hanjin Heavy Industries and Construction -Philippines (HHIC-Phil) has received a total of 37 ship orders since it started operation in 2006.

The good news is that there was no ship order cancellation, even as the world shipping industry was severely affected by the world economic recession.

"There has been no ship cancellation. The orders were still at 37, eight of them were already delivered, Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza.

But, the planned "expansion was put on hold, until new orders come in."

Hanjin is preparing for dry-dock number 7 for construction to accommodate future ship building activities.

Dry-docks 5 and 6 were included in the first phase of development worth $1.6 billion.

The second phase of the project development which involve the construction of dry-dock 7 will deliver another $1 billion in investment for Subic.

The dock no. 6 is 480-meter long 135 meter –wide and 13.5 meters deep which was completed last year. It has a bigger assembly line, and 1.7 kilometer quay wall and installation of 2 more units of ultra huge gantry crane.

Their commitment to employ about 40,000 employees would happen if the phase 2 of the project development would be completed.

The shipyard currently employs 18,000 workers.

Hanjin uses state of the art technology to ensure being at par with competitors and be able to maintain value for customers.

Hanjin’s shipyard expansion will allow the company to compete well with other major shipbuilders in Korea, such as Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering.

The firm plans to increase the shipbuilding capacity in Subic to 450,000 tons a year from the current 220,000 tons. The shipyard in Subic is equipped with facilities that can generate annual sales of about $3.1 billion. (Genivi Facto, Malaya)