Hyundai Heavy Industries towards a radical transformation



Today, in the message of beginning of the new year, Kwon Oh - gap, president and managing director of the South Korean Hyundai Heavy Industries (HHI), that it is the main world-wide navalmeccanico group, has announced the necessity to put into effect a radical transformation of the company in order to tackle to the mutant conditions of the market.

Oh-Gap has explained that in the 2015 group it has not reached the objective to return to record profits and that has achieved instead "consequent meaningful losses to the resolution of the contract for a semisubmersible system of perforation and important losses in the offshore segment. New orders, acquired with terms of payment more expanded and to inferior prices - it has added to the president and CEO of HHI - have had moreover an impact negative on the divisions of activity Shipbuilding, Offshore and Industrial Plant. The other divisions, that is to say the Engine & Machinery, the Electro-Electric Systems and the Construction Equipment, have parimenti suffered: the working activity has been reduced of the 20-30% and the activity in various workshops for the construction of equipments is suspended".

"In this critical moment - it has emphasized Oh-Gap - we cannot afford to blame to circumstances of the past or external factors. It is up to we to tackle to the adversities, what that would become impossible if we will continue to work as if nothing were changed. We need to change. We need to upset our way to think and our way to act. We need to recommence from the start all".

The leader of the South Korean navalmeccanico group has evidenced that he is indispensable to return to the profit. Oh-Gap has remembered that 23rd November the leaders of summit of the group have decided to give back to their salaries which part of an intense program of cost reduction and that the top manager is asked to give back until the half of their salaries and to the heads unit to give back 10%. These and other measures of cut of the costs - it has specified - "are adopted with the exclusive objective to return this year to the profit".

Oh-Gap has announced that for 2016 a turnover objective has been fixed pairs to 21.639, 6 billion won (17,9 billion dollars), while the objective for the new orders is of 19,5 billion dollars. "These objectives - it has found - can seem ambitiouses, but nothing it is impossible if we will engage ourselves to the maximum".