Hyundai Heavy sets lower order target for 2015

JANUARY 5, 2015 — In a New Year message Hyundai Heavy Industries President and CEO Kwon Oh-gap told employees that the world’s  largest shipbuilder has set its order target at $22.95 billion and sales target at 24.3259 trillion won ($21.9 billion).

The order target is down from  $29.6 billion in 2014 and Mr. Kwon called the new targets “lofty, but easily reachable if we make concerted efforts to revive our competitiveness.”

“In 2015, we must turn in a profit to lay the foundation for renewed growth,” he said. Last year HHI turned in losses that included a record operating loss in the third quarter and  a net loss of 1.46 trillion won (US$1.4 billion) in the July-September period.

“We find ourselves at a critical juncture, where we need to rise above external difficulties surrounding us while seeking recovery of our competitiveness through internal changes and innovations,” Mr. Kwon said in his New Year message. 

He said that in the year ahead the shipbuilder will focus on price competitiveness, on achieving a workplace that is safer and systemized and on changing corporate culture. 

“Production facilities and workers are the most valued assets of HHI, and operation thereof the barometer of our competitiveness,” he said. “Cutting out waste and material excesses, combined with systematic operation, will help enhance our product competitiveness.” 

On changing the corporate culture, Mr. Kwon’s message was:

 “Unchanging companies end up as laggards, and a bureaucratic corporate culture makes a dull company, discouraging talented people from joining the company or encouraging them to leave the company. Now, HHI should seek increased dynamism and energy by driving changes in leaders. When executives change, team heads change, and the words and actions of leaders can boost the morale and enthusiasm of young workers. I would like to sincerely ask our executives, department heads and team leaders to take a key role in instilling vigor and vitality into the company this year.”