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| At the Geoje Shipbuilding Marine Cultural Centre, after the visit to SHI. |
The bold figures in
the opening page of Shift - Samsung
Heavy Industries' Annual Report for 2011 - read "15 Billion Dollars - New
Orders in 2011". This is equal to Pakistan's foreign exchange reserves for
the same year. "Just one company managing such huge revenue!" wonders
our classmate Yasir Dar during a swift trip to Samsung Heavy Industry's (SHI) Geonje
facility on January 22.
More noteworthy is the doubling of this figure to USD 38 billion by 2011-end. This is perhaps what the company calls "Creating harmony in the ocean of the world" through its expertise in shipbuilding, offshore facilities, power and control systems, engineering and construction, wind energy and green management.
More noteworthy is the doubling of this figure to USD 38 billion by 2011-end. This is perhaps what the company calls "Creating harmony in the ocean of the world" through its expertise in shipbuilding, offshore facilities, power and control systems, engineering and construction, wind energy and green management.
A company, just over a generation
old, having started its ascent for a "harmonious tomorrow" in 1974
through the reclamation of Geoje Island off the southern coast of the Korean
peninsula, stands tall by the delivery of 797 ships to date through its "unmatched
cost competitiveness, new businesses and creative organisation culture" - the
three-point growth plan which the CEO In-Sik Roh states in his message.
Winning a USD 3-billion order
from Royal Dutch Shell for an LNG-FPSO and contracts for 10 drillships and 18
LNG carriers in 2011 speaks of the company's "shifting focus" to
adjust to market conditions and needs. Focusing on this strength in a
prevailing weak ship market, the company has set a sales target of USD 12.5
billion for 2012.
Amid uncertainty
about a meaningful order growth in the wake of an overhang of previously ordered
ships still looking for charter contracts, an increase in drilling permits in
the Gulf of Mexico and demand for drillships to explore oil and gas in
Latin America (Brazil), West Africa (Nigeria), the Arctic and Norway means
greater focus into these high-end value ships, LNG carriers and offshore
facilities that comprise over 90 per cent of SHI's order book today.
The
company is also making rapid strides in developing cost-effective eco-friendly
ships that comply with IMO standards and thereby a "Green Future".
Towards this target of reducing GHG emissions by 30% by the year 2015, SHI is working
on:
- Designing optimal shape of ships that maximise fuel efficiency
- Developing technologies to improve energy efficiencies
- Designing a new concept propeller ships, and
- Developing alternative energy carriers like the recent Smart Containment System Advanced (SCA), a first membrane-type cargo hold for LNG carriers.
In December 2012, SHI and Hanjin Shipping are reported to have signed a
joint research agreement for application of Vessel Performance System (VPS) to
be applied to 4,600 TEU-class container ships to reduce fuel consumption by upto
15% through route optimisation technology that identifies the optimal route to
a destination based on the ship performance data and weather data.
Despite a general lull in shipbuilding in 2012,
experts say "SHI has had the best order growth visibility among the 'Big
Three' including Hyundai Heavy Industries and Daewoo Shipbuilding & Marine
Engineering." So, what does the future hold?
The company is evaluating its existing business
operations, synergies and growth potential to find suitable new growth engines.
Sub-sea and heavy electric businesses seem to be the prime areas for future
development. Already, SHI and consortium partner Technip, a France-based
engineering & construction company, have bagged a USD 1.25-billion offshore
platform contract in Norway. This entails engineering and commissioning of a
fixed production platform for Martin Linge project, 180 km west of Bergen, in a
water depth of 115 metre. SHI hopes to spin off other projects soon.
Going
deep to rise high, harmoniously!
