Hyundai Heavy Industries Co., South Korea’s leading shipbuilder, said that it aims to achieve KRW 7.98 trillion in sales this year as its president warned of an unprecedented crisis due to declining order backlogs.
Hyundai Heavy President and CEO Mr Kang Hwan-goo said in his speech for 2018 “This year, we could face a grave situation that we have never gone through before.” He warned that Hyundai Heavy could face difficulties due to dwindling order backlogs and building work for offshore plants will “completely run out in a few months.”
Hyundai Heavy has not won any offshore plant orders for the past two years. The company’s 2018 sales target represents a 60 percent decline from a decade ago.
The shipyard said it is expected to post an estimated 10.03 trillion won in sales for 2017. The sales target is based on a parent base.
Separately, Samsung Heavy Industries Co., another major South Korean shipbuilder, said it has cut the number of its executives to 50 from 72 in a move to hold senior officials accountable for poor performances and to demonstrate willingness to make every effort for a new take-off.