Hanjin delivers 5th ship order to Egyptian firm

HANJIN heavy industries Corp.-Philippines (HHIC-Phil) has delivered five of the 10 ship orders of an Egyptian shipping firm, showing a healthy business despite the ongoing global economic downturn.

While other major shipyards have opted to cease operations, Hanjin shipyard in Subic continues with its shipbuilding activities, according to a source from the Subic Bay Metropolotan Authority (SBMA) who requested anonymity because he was not authorized to speak on the matter.

Hanjin sees opportunity in offshore repairs, through the available facility at the Subic shipyard. Conventional and offshore vessels can now be built in Subic.

"It wasn't possible for us because of harware matters but since the completion of our new shipyard, now we are able to enter into the offshore plant business. As productivity increases in Subic, it's providing us with mire opportunity for new challenges," said a Hannjin spokesperson.

However, HHIC still has some unsolved problems. They have to secure a design team for the offshore plant development, for alliances with external engineering groups in order to intensify their offshore technology.

"We know that we got into the business late compared to other competing yards but HHIC developed Korea's first drillship in 1977 and the idea behind the Floating Production, Storage and Offloading vessel (FPSO) of today is based on that model, so with our accumulated technology put together, we are confident that it will be a success," the company said.

Hanjin no longer imports ship components from Korea as it embarked on building its own in its Subic shipyard Jong Shup Shim, Hanjin Philippines Inc. president, said Hanjin Subic can make $29 million worth of locally produced components for the first year and is confident of increasing them to $57 million next year.

Hanjin shipyard has 15,000 workers employed by the South Korean shipbuilder and its subcontractors.

Odense Steel Shipyard in Denmark, operated by AP Moller Maersk, has already decided to discontinue shipbuilding activities brought by the competitive situation in the shipbuilding industry.

It said due to the expansion of the yard capacity in low cost countries in the Far East and most recently with China's determined endeavors to become the world's largest shipbuilding nation, it became increasingly difficult to survive in the shipping industry in recent years.

"Although inquiries received are still high, stiff competition is expected from Chinese yards. The company will also pursue new building, fabrication and conversion jobs," it said, adding that the continuing global economic situation has and will continue to affect the shipping industry.

By Genivi Factoa - Malaya