Hanjin Subic Bay Yard Achieves 70% of 2015 New Order Target

With relatively good performance due to no unfavorable factors of offshore plants, Hanjin Heavy Industries & Construction (HHIC) is happy about the performance of its overseas Subic Bay shipyard.

HHIC’s Subic Bay shipyard in the Philippines, which has been operating for six years now, has achieved 70 percent of the 2015 new order target with the orders of large container ships. In contrast, HHIC’s Youngdo yard in Busan, which is considered the beginning of the company, has shown some 20 percent of the new order achievement rate.

According to industry sources on Oct. 6, HHIC’s Subic Bay shipyard won contracts worth US$1 billion (1.17 trillion won) as of the end of last month. Accordingly, it is expected to achieve the 2015 target of US$1.2 billion (1.4 trillion won) with ease. The Subic Bay shipyard has received orders to build three 20,000 TEU container ships for the first time this year and six 11,000 TEU vessels. Considering the fact that the shipyard obtained the US$56 million (653.52 billion won) contracts to build a total of six ships last year, it has won orders, which are nearly two times as much as last year, in the third quarter alone.

The strengths of the Subic Bay shipyard are a large site, 10 times that of the Youngdo yard, and cost competitiveness, with labor costs lower than China. With a floor space of 80,000 peyong (264,000 m2), the Youngdo yard cannot build vessels with more than 6,000 TEU. Therefore, building ships with more than 10,000 TEU, which fits with the current mega ship trend, is only possible in the Subic Bay shipyard, said a HHIC spokesperson.

The labor cost also stands at 400,000 won (US$343) a month per person. The figure is much lower than an average of 5 million won (US$4,284) in Korea or some 1 million won (US$857) in China. An official from HHIC said, “As an alternative of the Youngdo yard, the company has invested in the Subic Bay shipyard for about a decade to make it technologically competitive. All our hard work finally paid off.”

Unlike the Subic Bay shipyard that has become stable, however, HHIC’s Youngdo yard seems unstable. The shipyard received US$69 million (805.23 billion won) orders for 15 vessels in 2013 when it resumed building ships. Last year, it saw a slightly better performance with 11 ships at US$77 million (898.59 billion won). However, the shipyard only won US$260 million (303.42 billion won) contracts for eight ships as of the end of Sept. this year. The cumulative figure is a mere 22 percent of the target of US$1.2 billion (1.4 trillion won). Of the eight ships, two ships are liquefied petroleum gas (LPG) carriers, while another two ships are 1,900 TEU ships, and the remaining four ships are special vessels.

Despite poor performance in the Youngdo yard, HHIC’s performance prospects in the third quarter are not dim. This is partly due to the favorable turn in the construction sector and the company’s efforts to reduce deficits.

According to data from FnGuide, a securities information service provider, sales and operating profits of HHIC in the third quarter are estimated at 666.2 billion won (US$570.87 million) and 14.9 billion won (US$12.77 million). Although sales decreased from the second quarter, operating profits turned positive. FnGuide expects that Hyundai Heavy Industries will post 26.1 billion won (US$22.37 million) in operating profits, while Samsung Heavy Industries will post 29.7 billion won (US$25.45 million. However, Daewoo Shipbuilding & Marine Engineering is expected to see losses of 35 billion won (US$3 million). In terms of operating profits, HHIC surpasses the nation’s big three shipbuilders. (Jung Min-hee, Business Korea)

PHOTO:
Subic Bay Shipyard, a subsidiary of Hanjin Heavy Industries & Construction in the Philippines.

http://www.businesskorea.co.kr/news/industry/12380-almost-there-hanjin-subic-bay-yard-achieves-70-2015-new-order-target

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Hanjin unveils first Philippine-made LPG carrier

Korea’s shipbuilding giant Hanjin Heavy Industry and Construction Co., Ltd.–Philippines (HHIC-Phil) recently unveiled the first-ever Philippine-made Liquefied Petroleum Gas (LPG) carrier.

The LPG carrier measures 180 meters in length, 29.4m in breadth and 18m in depth.

It was ordered by Belgian shipping company Exmar Shipping BVBA and was christened as “Kaprijke” by company owner Saverys family.

Construction of the LPG carrier began in June of last year.

The project has once again affirmed the world-class craftsmanship of Filipino workers in the global shipbuilding industry.

In a statement, HHIC-Phil president Jeong Sup Shim recounted the challenges the company had to go through in putting up the state-of-the-art shipyard in the country’s premier freeport.

He attributed the company’s success to the support of the Philippine government and outstanding work ethic of Hanjin shipyard workers.

“It is our company’s earnest desire and long term commitment to catapult the Philippines as the number one shipbuilding country in the world,” Shim said.

Citing the June 2015 edition of the shipping journal published by highly authoritative Europe-based Clarksons Research, “Both the Philippines and HHIC-Phil Inc. have been making great strides in the international business scene, motivating us to push ourselves to the limit to bring more prosperity not only for our company but also for our generous host – the Filipino people,” Shim further said.

“The Philippines is currently ranked fourth in the world in terms of order book by builder country with 2.1 gross compensated tonnage (CGT) for new vessel,” Shim said.

Hanjin Subic shipyard is the 10th largest shipyard in the world in terms of order book by shipyard, accounting for 1.8 GCT or 74 percent of the Philippines’ CGT for new vessels.

The shipbuilding company still has seven LPG carriers in the company’s order book to be delivered in the immediate future.

In 2012, HHIC-Phil Inc. put the country in the worldwide spotlight with the simultaneous inauguration of two Suezmax Crude Oil Tankers first ever built on Philippine shores.

HHIC-Phil Inc. has been building huge commercial vessels ranging from container ships to bulk carriers, crude oil tankers and off-shore structures mainly for overseas clients since 2008. Its Subic shipyard boasts of one of the largest drydocks in the world today.

The company has invested around $1.7 billion so far. Its shipyard is currently home to almost 29,000 workers and still counting.

HHIC-Phil operates a Skill Development Center, a multi-million world class training facility located at the heart of the Subic Bay Freeport’s Industrial Park. (Bebot Sison Jr., The Philippine Star)

http://www.philstar.com/business/2015/09/03/1495242/hanjin-unveils-first-philippine-made-lpg-carrier

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Subic Freeport workforce to breach 100,000-mark this year

The number of workers in this premier free port is expected to reach the 100,000 mark this year, as the Subic Bay Metropolitan Authority (SBMA) continues to attract investors in the tourism and manufacturing industries here.

According to Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, the Subic Bay Freeport is now home to a total of 99,463 employees working in various companies here, with shipbuilding giant Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) having almost 30,000 workers.

Garcia said that with the current investment and employment generation outlook, as well as the need to allocate some area for the planned Philippine military bases inside Subic, the SBMA is looking around for more suitable spaces for new investors since most of the available land in the Freeport have already been taken.

As of now, Garcia said that the service industry in Subic Freeport hires the most number of workers at a total of 45,661, which is equivalent to 45.91% of the total number of employees here. The workers in this sector include waiters, busboys, bellhops, kitchen staff, and others employed by tourism-related companies.

The manufacturing industry comes in next with 14.79% of the total Subic workforce. Workers in this field are mostly employed at the two industrial parks here, the Japanese-owned Subic Techno Park (STEP) and the Taiwanese-controlled Subic Bay Gateway Park.

He added that with new economic developments in the Asia-Pacific region, more Japanese companies are now looking into the possibility of investing in Subic Bay Freeport.

Meanwhile, the recent construction boom in the Freeport zone has brought more workers to Subic. Garcia said that as more hotels and restaurants are put up inside the Freeport, construction workers has swelled to 2.81% of the workforce here.

Another growing area in the employment scene here is the category for domestic helpers and caretakers. Garcia pointed out that aside from tourists, retirees are also moving into the Subic Freeport for its tranquil atmosphere and access to health and wellness facilities.

Among the companies registered in the Subic Bay Freeport, Hanjin is the single biggest employer with workers at its Redondo shipbuilding facility making up 36% of the total Subic workforce.

Garcia said that Hanjin expects its workers to breach the 30,000 mark this year, as the company had signed more shipbuilding contracts for this year.

According to Hanjin President Jeong Sup Shim, the company would require more skilled workers to complete new orders such as the three ultra-large container ships (ULCS) for the French shipping conglomerate CMA CGM.

Shim added that aside from CMA CGM, the company has also bagged contracts for six 11,000-TEU vessels with leading shipping companies across Europe and Asia.

Shim also said that because of the growing business at Hanjin’s Subic shipyard, the Philippines is currently ranked by the authoritative and Europe-based Clarksons Research as the 4th largest shipbuilding nation in the world in terms of order book by builder country.

He added that at the same time, Clarksons has reported that Hanjin Subic shipyard is the 10th largest shipyard in the world in terms of order book and now contributes 1.7-million compensated gross tonnage (CGT), which is equivalent to 74% of the Philippines’ CGT for new vessels. (JRR/MPD-SBMA)

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Hanjin gets DOLE certification on labor and safety standards

Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil), the biggest shipbuilding company in the country, has passed the stringent standards of the Department of Labor and Employment (DOLE), following an assessment early this month.

HHIC-Phil President Jeong Sup Shim said in a statement on Monday that DOLE officials have issued the South Korean shipbuilder certificates of compliance on General Labor Standards (GLS) and Occupational Safety and Health Standards (OSHS) for its shipbuilding facility at the Redondo Peninsula in this free port.

Shim said that aside from Hanjin, the 20 firms doing subcontracting works at the Redondo shipyard were also given compliance certificates after 30 DOLE officials, led by Secretary Rosalinda D. Baldoz toured HHIC-Phil workplaces on May 20.

Shim said Hanjin, along with its contractors and subcontractors, underwent joint assessment by Labor Laws Compliance Officers of DOLE-Central Luzon office, who also extended technical assistance to these companies to correct deficiencies and make them compliant with labor laws.

During the visit, Baldoz awarded the certificates of compliance to HHIC-Phil and its contractors and subcontractors “so the public, investors and workers may know that [we] adhere to the country’s labor laws,” Shim said.

Following this, Hanjin and its subcontractors signed a memorandum of agreement (MOA) with the DOLE to affirm their commitment in adhering to labor laws while ensuring that the compliance status is sustained and monitored by the labor agency.

The MOA was immediately made effective as specialized DOLE programs and services will be implemented in the form of “Productivity Tool Box” programs and services among the companies.

Baldoz also reminded HHIC-Phil that all new contractors it will engage shall be similarly subjected to joint assessment within six months of their operations and must secure certificates of compliance issued by DOLE for both GLS and OSHS.

Shim said the company welcomes the strict enforcement by the DOLE of labor laws, adding that HHIC-Phil “is very keen in continuously improving the safety and health situation” in its shipyard.

He said HHIC-Phil has been actively participating in the promotion of enhanced OSH condition and has even hosted in February a risk-assessment exercise attended by over 40 representatives from the International Labor Organization, Asean Occupational Safety and Health Network (OSHNET), as well as the DOLE to showcase the best practices at the Redondo shipyard.

Shim said that because of its best practices, HHIC-Phil has been topping the Philippines’s overall vessel order with 86.6 percent of the total orders booked. The rest, or a total of 13.4 percent, is taken up by Japanese shipbuilder Tsuneishi, which is based in Cebu.

Shim said in a survey in April by Clarkson, the world’s largest shipbroker, the Philippines claimed its spot as the No. 1 shipbuilding country with the highest contracts won equivalent to 590,000 Compensated Gross Tonnage (CGT), thereby surpassing the biggest shipbuilding countries, including Korea, China and Japan, with 530,000 CGT, 290,000 CGT and 150,000 CGT, respectively.

“The Philippines is now making its mark internationally in terms of shipbuilding, and HHIC-Phil is proud to be a major contributor in the country’s economy,” Shim also said. (Henry Empeño, BusinessMirror)

http://www.businessmirror.com.ph/hanjin-gets-dole-certification-on-labor-and-safety-standards/

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Subic shipyard to build world’s largest vessels

HANJIN HEAVY Industries and Construction Philippines Inc., operator of the biggest shipyard in the country, secured a contract from a European company to build three of what would be the world’s largest container vessels.

According to the Korean shipbuilder, its shipyard in Subic, Zambales, will be building three 20,600 twenty-foot equivalent unit (TEUs) container ships for CMA CGM, the biggest shipping company in France, and the third largest in the world.

“Signing a contract to build 20,000 TEU-level ultra large container ships with CMA CGM … confirms the world-class shipbuilding technology and capability of HHIC (Hanjin Heavy Industries and Construction Holdings),” the company said in a statement.

The company hopes to start delivering the container ships from the Subic shipyard by the second half of 2017.

According to HHIC, the Hanjin Subic shipyard is capable of building two 20,000-TEU container ships at the same time.

In response to the clients’ requests however, HHIC will reinforced the hull structure, such as fatigue design life, to build 26,000-TEU container ships.

The company has likewise focused on the improvement of environment-friendly performances, including the installation of the latest high-efficiency engine, propeller design and development of an energy-saving system.

According to Hanjin, the order from CMA CGM will be an ultra-large container vessel measuring 400 meters in length, 59 meters in breadth and 33 meters in depth. It will be capable of carrying 20,600 20-foot containers.

The deck alone is as large as four football fields. If the loaded containers were to be lined up end-to-end, these would span about 126 kilometers, Hanjin said. (Amy R. Remo, Philippine Daily Inquirer)

Read more: http://business.inquirer.net/190462/subic-shipyard-to-build-worlds-largest-vessels#ixzz3XozmvKIR
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Hanjin-Subic hosts international work-safety evaluation exercise

Hanjin Heavy Industries and Construction Philippines (HHC-Phil Inc.) recently hosted an occupational safety evaluation exercise conducted by the International Labor Organization (ILO) and the Association of Southeast Asian Nations-Occupational Safety and Health Network (Asean-Oshnet).

Min Hwan Choi, Hanjin’s deputy general manager for external trade, said in a statement here that the Hanjin management took great pride in hosting an exercise that provided “an opportune time for us to really showcase to the rest of the world that our occupational safety and health programs, including our facilities, are at par with international standards.”

“We are greatly honored that an occupational safety and health-related undertaking with global impact such as this [was] carried out in our Hanjin Subic shipyard,” Choi said.

“I guess there is no better workplace for this activity than our shipyard considering our very complex shipbuilding processes that entail enormous efforts to put in place more responsive safety policies to protect the well-being of our huge work force,” he said.

Senior officials of Hanjin welcomed 45 representatives from the ILO and Asean-Oshnet for the one-day General Workplace Evaluation and Risk Factor Identification Exercise that was held in connection with a three-day Training-of-Trainers (TOT) workshop held in the country from February 10 to 12.

The event was sponsored by the ILO and the Asean-Oshnet in collaboration with the Korea Occupational Safety and Health Agency (Kosha) and the Philippine government, through the Department of Labor and Employment and the Occupational Health and Safety Center.

The participants in the workshop were headed by ILO Country Director Lawrence Jeff Johnson; engineer Ho Siong Hin, commissioner of Safety and Health at Singapore’s Ministry of Manpower; Ingrid Christensen, ILO-Bangkok senior specialist on Occupational Safety and Health; Kim Kyung Hun and Kang Dong Lee of the Kosha; Consuelo Manchon of ILO-Hanoi; Nguyen Thai Hoa of ILO Vietnam; OSHC Executive Director Ma. Teresita Cucueco; and Health Control Division chief Maria Beatriz Villanueva.

The TOT workshop was primarily organized for the Asean-Oshnet member-countries that included Brunei Darussalam, Cambodia, Myanmar, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

In this training, however, Papua New Guinea and Timor Leste were given an opportunity to learn from and interact with colleagues of neighboring countries in the field of occupational safety and health (OSH).

The Asean-Oshnet has been actively working to share experiences and knowledge on OSH and to enhance safety and health working conditions among the member-countries. It has also planned and implemented various OSH programs, including training for capability-building of government institutions and their officials.

Labor Secretary Rosalinda Baldoz said the conduct of the trainers’ workshop “comes at a most auspicious time, as it will address the need to intensify the advocacy of having a safe and healthy working environment, not only in our respective countries, but in the entire Asean region and now including our Pacific Island partners of Timor Leste and Papua New Guinea, as well.”

She said the Philippines has been one with the Asean in recognizing that partnerships among the member-countries are essential in building competencies and skills in all aspects to enhance and propel the growth of the nations toward becoming first-class economies.

During the welcome ceremony at the Hanjin shipyard, Baldoz also expressed gratitude to Hanjin for allowing both local and foreign stakeholders to conduct the ocular visit and for showcasing the company’s best practices in addressing its safety and health concerns. (Henry Empeño, Business Mirror)

PHOTO:
Representatives from the International Labor Organization and the Asean-Oshnet confer with safety officers during a tour of the Hanjin shipyard in Subic Bay Freeport.

http://www.businessmirror.com.ph/hanjin-subic-hosts-intl-work-safety-evaluation-exercise/

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Greek firm buys 2 Subic-built container ships

Two state-of-the-art container ships were launched in this free port by their Greek owner last week, as builder Hanjin Heavy Industries & Construction-Philippines (HHIC-Phil) aimed to further solidify its position as the fourth-largest shipbuilder in the world.

HHIC-Phil President Jin Kyu Ahn said in a statement on Tuesday that the newly built ships were both 6,800 twenty-foot equivalent units container vessels ordered in January last year by Athens-based shipping company Technomar Shipping Inc.

Each vessel weighs 70,704 gross tons, and measures 270.09 meters long and 42.8 meters wide.

Top officials of Technomar, headed by Managing Director George Youroukos, christened the new vessels MV UASC Bubiyan and MV UASC Yas during a naming ceremony at the Hanjin shipyard in Subic’s Redondo Peninsula.

The ships will be homeported on Marshall Islands, Tecnomar officials said.

“These are the first two ships christened here in 2015,” Ahn said, adding that both vessels showcase the craftsmanship of Hanjin’s Filipino work force.

He said the new ship deliveries capitalized on the firm’s “accumulated wealth of experience over the years, coupled by our unrelenting pursuit for technological advancement and innovative engineering in our core business.”

Hanjin is currently one of the biggest employers in the Philippines, with a work force of about 27,000 Filipinos to date.

Ahn said that since the Hanjin started commercial operations in Subic in 2008, it has already completed a total of 77 projects, ranging from bulk carriers, container ships, crude-oil tankers and barges, mainly for overseas clients.

Still, the firm is trying hard to maintain its status as the fourth top shipbuilder in the world, a position it had firmly cemented in 2014 by breaking the $1-billion mark in terms of sales revenue.

Ahn said this has been made possible by the huge capacity of the Subic shipbuilding facility, which is about 11 times bigger than its Yeongdo shipyard in Busan, South Korea.

With a reported backlog of 39 ships, Hanjin said it will hire 2,000 additional workers this year to keep the shipyard running at full capacity. (Henry Empeño, BusinessMirror)

PHOTO:
MV UASC Yas at the Hanjin shipyard in the Subic Bay Freeport.

http://www.businessmirror.com.ph/greek-firm-buys-2-subic-built-container-ships/

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