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Korea Learned Lesson from the Philippines; ready for 20 new Frigates to replace aging patrol corvettes with Hyundai Heavy

Hyundai Heavy launches S. Korean Navy's second frigate

SEOUL, July 18 (Yonhap) -- Hyundai Heavy Industries Co. on Thursday unveiled the South Korean Navy's second 2,300-ton frigate with improved warfare capabilities against North Korea.

 A launching ceremony took place at Hyundai Heavy's shipyard in the southeastern city of Ulsan, attended by the Chairman of the Joint Chiefs of Staff, Navy chief and other senior officials.

 The locally made frigate is capable of carrying maritime operations helicopters and equipped with advanced radar system, guns, sonar system as well as anti-aircraft and anti-ship missiles, the Navy said. It has a maximum speed of 30 knots (55.6 kilometers/hour) and accommodates up to 120 personnel.

 The naval ship was named after Gyeonggi Province that surrounds the capital Seoul and the western port city of Incheon, which has a strategic importance for defense. The first frigate named Incheon was launched in January.

 The Gyeonggi will be delivered to the Navy next year and deployed for operation in 2015, officials said.

 About 20 frigates will be built to replace the country's aging patrol combat corvettes and escort ships by 2020, the Navy said.

With report from Yonhap News Agency

Hyundai EC wins $697 Million USD part of the $3 Billion USD Turkey- Europe Bridge contract

Turkey's Prime Minister Tayyip Erdogan addresses members of parliament from his ruling AK Party (AKP) during a meeting at the Turkish parliament in Ankara May 7, 2013. Credit: Reuters/Umit Bektas

A consortium led by South Korea's Hyundai Engineering and Construction Co. awarded a $697 million US Dollar contract to build a suspension bridge in Turkey.

The 2.16 kilometer (1.34 mile) bridge across the Bosporus in Istanbul, connecting Europe and Asia, is set to be completed by 2016, Yonhap News reported. The consortium said the bridge, the third such across the strait, would have eight lanes and two rail tracks.

Hyundai EC said it holds a 60 percent stake in the project and its partners, the rest.

New bridge linking Europe and Asia embodies Turkey's rise

On Wednesday Turkey launched construction of a third bridge linking its European and Asian shores, the latest in a slew of multi-billion dollar projects that Prime Minister Tayyip Erdogan sees as embodying its emergence as a major power.

Erdogan, who has led a decade-long transformation of a once crisis-prone economy into Europe's fastest growing, has prioritized the building frenzy as the nation's infrastructure struggles to keep up with its growth.

With an eye to an election cycle ending in parliamentary polls in 2015, Erdogan called on the Turkish, Italian and Korean firms involved to complete the Istanbul bridge within two years.

"This is how we are building a powerful Turkey," he told a crowd of several thousand people, some waving Turkish flags, who gathered at a construction site on the shores of the Bosphorus strait to the north of Europe's largest city.

"For the seven hills of Istanbul, we have seven grand projects, one is this bridge, a third necklace over the Bosphorus," he said of the $3 billion project, set to be the world's widest and longest combined road and rail bridge.

A huge 150 billion lira ($80 billion) is being invested in projects including a third Istanbul airport, billed to be one of the world's biggest, as well as rail and road tunnels under the Bosphorus, a high-speed train line to the capital Ankara and a shipping canal designed to rival Panama or Suez.

The bridge is meant to ease congestion in the city of 14 million people. Its population was less than 2.5 million when the first Bosphorus Bridge was opened to traffic in 1973.

With the population forecast to hit 17 million and the number of vehicles seen rising to 4.4 million from 3 million within a decade, the government is under pressure to act fast.

Environmental groups have said the highway and airport projects will cause significant damage, leading to the destruction of hundreds of thousands of trees and harming natural water basins, accusations rejected by Erdogan.


Wednesday's ceremony, timed to coincide with the 560th anniversary of Istanbul's conquest by Sultan Mehmed the Conqueror, harked back frequently to the Ottoman Empire, which crumbled to be replaced by modern Turkey 90 years ago.

Such references have become commonplace under Erdogan's rule as the country regains prominence across the Middle East, encouraging critics of the authoritarian prime minister to accuse him of behaving like a modern-day sultan.

Hundreds of military officers have been jailed on charges of plotting a coup against Erdogan; others including academics, journalists and politicians are facing trial on similar accusations.

Barred from running for prime minister again, Erdogan is widely expected to bid for a newly empowered presidency in an election next year, cementing his status as Turkey's most significant leader since Mustafa Kemal Ataturk, founder of the modern secular republic.

Erdogan frequently embraces Istanbul's imperial past, when the Ottoman Empire sprawled across three continents.

"In all the lands where they were present, the Ottomans left behind creations which conquered the people's hearts. Just like our ancestors we are continuing to write history and leave behind creations," he said.

An Ottoman military band banged drums and smashed cymbals while Erdogan, President Abdullah Gul and their wives said a Muslim prayer before launching the project near the village of Garipce on the European side of the city.

The bridge will be named Yavuz Sultan Selim, commonly known in English as Selim the Grim, whose 16th century reign brought huge expansion in the Ottoman Empire and dominance across the Middle East.

With reports from Big News Network and Reuters

Hyundai Heavy Industries, 20th on the Fortune Global 500 List

Fortune magazine has recently published their new Global 500 List for 2013. With a turn-over of USD 48.8 billion and 38,000 employees, Hyundai Heavy Industry now ranks no. 206 on the 2013 list.

The list rates companies (around the world) based on their total revenues in 2012. Revenues include consolidated subsidiaries and reported revenues from discontinued operations, but exclude excise taxes.

Hyundai Heavy Industry is right on track to grow their business in every major division and in every market around the world. Especially the Construction Equipment and the Shipbuilding divisions look very promising for the coming years. Shipbuilding benefits from the growing demand for fuel efficient, high technology ships. Construction Equipment has recently increased the production capacity and expanded the product range.

Hyundai solar PV targets US and Japan for growth in solar energy market

HHI has supplied many projects with modules over the years, including this 22MW Ukraine PV project.

Only around 18 months ago media reports were claiming that Hyundai Heavy Industries' (HHI) foray into the solar PV market was over. But despite the highly competitive marketplace that has generated an extended period of consolidation, bankruptcies and market exits, HHI is focused on growing its market presence.

Talking exclusively to PV Tech during Intersolar Europe, Sung-Rak Kim, senior vice president and COO of Hyundai Heavy Industries, Green Energy Division detailed how the company was implementing its green energy business plan in which PV would be at its core.

A key aspect to focus on is that HHI is interested in green energy and leveraging its array of technologies and manufacturing capabilities to provide complete energy solutions for residential, commercial and large-scale markets.

Importantly, said Kim, HHI is focusing on certain strengths it believes it enjoys despite the obvious challenge the majority of PV manufacturers have in competing with China-based rivals.

Emphasis is being placed on growing its presence in the US and Japanese markets after building a strong backbone for longer-term success in these markets.

US market

HHI completed UL certification for its PV modules in 2009, and has since gone on to supply high efficiency modules to utility-scale projects and commercial and residential markets in the US.

Kim said HHI's biggest project to date in the US has been the supply of modules for the AVSEII (Arlington Valley Solar Energy II) 142MW DC project which is located on approximately 1,160 acres in Arlington Valley, Arizona.

Currently under construction the PV power plant is expected to start full commercial operation by the end of 2013.

For commercial projects, HHI has teamed with oil giant, Chevron, where both parties are co-marketing HHI modules for public buildings. As the module supplier for these projects, HHI also makes donations to non-profit project owners such as schools, County and Government District bodies under its Community Outreach Program.

Not surprisingly, bankability issues for HHI are not an issue, helping the company to compete effectively in such downstream markets.

With the US market having topped 10GW of cumulative installations, according to the recent analysis from NPD Solarbuzz, the forecast of installations growing to 17GW by the end of 2014, supports Hyundia's strategy to build its business in the US.

Japan market

Kim was quick to explain that Hyundai's other focus on the booming Japanese market had been long in the making and predated the beginning of an attractive FIT in 2012, which has since catapulted Japan to compete with China this year for the largest PV market position.

It was back in 2009 that HHI said it had launched its modules into the Japanese market and received JET certification in 2010 for entry into the commercial market, followed by J-PEC registration required for supplying the residential markets in Japan.

The company now claims to have built a customer base across the downstream business in Japan, which is supporting its growth efforts in the country.

Among its customers is the Eurus Energy Group, one of the top renewable energy players in Japan. HHI recently contracted to supply 47,000 modules for a 4.8MW project within a multi-purpose, multi-functional business park in Misaki, Japan.

The company said that electricity generated from the plant would be sold to Kansai Electric Power and provide electricity to 3,900 households, or about a half of Misaki town's population. The project is said to be completed in August, 2013.

European market

The company acknowledged the impact Chinese low-cost modules had on its business in Europe. Kim noted that nearly 60% of module shipments had previously been to Europe but this had declined to around 20% in the last few years.

The EU anti-dumping duties against China have provided the likes of HHI with an opportunity to supply more modules into the EU market to fill the void left by Chinese producers as they seek to go after China's domestic market and that of Japan.

When asked what capacity the company had and how much capacity could be allocated to Europe the executive declined to give details.

However, he noted that it could potentially increase shipments to Europe from 20% to somewhere between 30-40%, should the European market require HHI's modules.

However, like many companies seeing strong demand for bankable and branded modules in Japan, the European market is struggling to attract its share of higher-end module supply.

Kim reiterated several times in the interview that Hyundai was by nature a conservative company and did not believe that it was not in a position, nor wanted to be seen to be in a position, to take a short-term advantage of the opportunities in EU due to the anti-dumping issue.

"Even though at this time anti-dumping is a big issue, we do not want make an issue of this," noted Kim.

A 'wait and see' approach was more in line with company's culture on this subject, Kim added.

That said it is obvious that Hyundai's brand and high efficiencies are well suited to the European residential market, and a prolonged impact from anti-dumping duties on Chinese producers would strengthen Hyundai's potential position within the region.

R&D activities

HHI reached a milestone last year when its Solar R&D Center in Eumseong, Korea, home to its 600MW of cell and module manufacturing operations, was completed at a cost of US$20.8 million.

Although Kim was hesitant to provide annual spending figures for R&D, the investment in the facility alone would have put Hyundai into the top 10 spenders on R&D in 2012.

The executive noted that the company had had a strong focus on R&D since entering the market but had markedly intensified this since the establishment of the dedicated facility.

As a result, HHI said that it had been successful in achieving a lab efficiency of 20.5% with its large-area, copper-plated p-type PERL cell last year, which was presented at EU PVSEC.

In tandem, HHI also started the development of the mass-production version of its PERL cell, which uses screen-printed contacts retaining compatibility with conventional module assembly processes. A champion cell conversion efficiency of 20.2% was said to have been achieved.

The screen-printed PERL cell was said to incorporate selective-emitter, rear-passivation, and fine-line-metallisation technologies, producing an average efficiency of over 20% in pilot line production.

This converts to a 280W, 60-cell module but Hyundai said that this could be increased to 290W when employing further enhancements to reduce optical losses.

HHI is bullish on its next-generation cell and module technology, which the company said would be launched in 2014, after necessary production tool upgrades are completed.

"We are excited that we will be able to provide to our customers high-power and high-reliability modules that also cost less per watt to produce," noted Kim. "We will launch the product early next year in Europe and target the residential and commercial markets through our [distribution] partners such as MHH in Germany and Segen in the UK."

However, the new R&D centre and engineering departments has been responsible for several important milestones related to further improving the front-side passivation process and lowering the rear-capping costs.

"We are confident that, by the time we start the mass production of our PERL cell next year, we'll see even higher module output powers and lower production costs," added Kim.

Hyundai is therefore focusing on its ability to compete in markets requiring a focus on high-quality and high-performance products while leveraging its bankability and product warranty security to provide long-term assurance to customers.

Next year will be critical to its next-generation product roll-out intended to capture and propel its business within its key served markets.


Hyundai Merchant Marine to spend US$183 million on bulk carriers

July 10 (Yonhap) -- Hyundai Merchant Marine Co., a South Korean shipping firm, said Wednesday that it will spend around 208 billion won (US$183 million) for four new bulk carriers.

In a regulatory filing, the shipper said it has placed a shipbuilding order for the transportation of coals used for power generation.

The ships will be constructed by Hanjin Heavy Industries Co., a local shipbuilder, Hyundai Merchant said.

The shipping firm said it will receive the vessels beginning in 2015, and the vessels will be mobilized for transportation of coals from Canada and Australia to South Korea.

Last month, the country's No. 2 shipping firm said it has secured a 175 billion won deal to transport coal for a local utility firm.

Hyundai Merchant expects additional revenues of up to 900 billion won down the road as well.

Copyright Yonhap News Agency, 2013. All rights reserved. 

Hyundai Heavy to Lift Prices for fuel-efficient vessels on Demand as China Shipyards Falter

Hyundai Heavy Industries shipyard in Ulsan, about 410 km (255 miles) southeast of Seoul. REUTERS/Lee Jae-Won

(Bloomberg) — Hyundai Heavy Industries Co., the world's biggest shipbuilder, plans to raise prices as demand for fuel-efficient vessels helps it skirt the global supply glut hurting Chinese yards.

Orders may exceed this year's target of $11.3 billion with about 60 percent of that already met, Ka Sam Hyun, executive vice president in charge of ship sales, said in a July 3 interview. The Ulsan, South Korea-based company plans to raise prices in the second half, he said.

"The big focus right now is on fuel efficiency," Ka said. "At a time when prices have fallen so much, shipping lines seem to be willing to pay a bit more to get better performing ships on time. This is why the top tier shipyards will benefit."

Hyundai Heavy's optimism contrasts with gloom over Chinese shipbuilders. An industry group last week said a third of China's yards may shut down in about five years as they struggle to win orders. South Korean yards, which have dominated the construction of mega ships, are benefiting as lines including A.P. Moeller-Maersk A/S order bigger, fuel-efficient vessels.

China Rongsheng Heavy Industries Group Holdings Ltd., the country's biggest yard outside state control, slumped to a record in Hong Kong trading on July 5 after saying it's seeking government financial support as orders and prices decline. The company also said it may post a loss in the first half.

Order Book

About 483 shipyards in China won $10.5 billion worth of orders in the first six months of this year, while 94 builders in South Korea won $18.5 billion, according to Clarkson Plc, the world's biggest shipbroker. Chinese yards, who dominate bulk- carrier construction, won 21.2 million deadweight tons of orders in the first half compared with 16.6 million tons for Korean companies, according to Clarkson.

The order book at China's shipbuilders fell 23 percent at the end of May from a year earlier, according to the China Association of National Shipbuilding Industry. One-third of the nation's yards that face the danger of closing have failed to get orders "for a very long period of time," Wang Jinlian, the group's secretary general, said July 4.

The entry of the Philippines as the fourth world's largest shipbuilder would be another threat to china's Shipbuilding Industry. The Philippine economic growth in the first quarter of 2013 surpassed China's economy. Austral Shipbuilder opened its shipyard in Balamban Cebu, Philippines on January 2013 eyeing bulk orders from the Philippine Government.

Hyundai Heavy, which had failed for eight years to win orders from China, signed a contract in May to deliver the world's biggest container ship to China Shipping Container Lines Co. Hyundai Heavy beat Chinese builders for the $683 million deal for five vessels that can each carry 18,400 20-foot boxes.

Sea Conditions

The new ships will use an engine that can automatically control fuel consumption to suit speed and sea conditions, helping improve fuel efficiency while reducing emissions and noise. Delivery will start in the second half of next year.

"We see more orders for bigger ships made by Korean companies," Sarah Wang, a Shanghai-based analyst at Masterlink Securities Corp., said. Shipping lines "require higher levels of technology and fuel efficiency to cut costs."

Since 2010, yards in South Korea delivered all except two of the 144 vessels that can carry more than 10,000 boxes, according to Clarkson.

Hyundai Heavy also benefited from demand for ships to haul liquefied petroleum gas, winning orders for 11 of these vessels this year, Ka said. Each ship has a capacity of more than 60,000 cubic meters. The company's total order target of $11.3 billion for this year includes contracts for its Hyundai Samho Heavy Industries Co. unit and is higher than the $8.6 billion it won last year.

'Still Hungry'

"We are still hungry," Ka said. "We have invested in new technologies and improving existing ones to cut fuel burned by ships. That's because during hard times, shipping lines become more interested in cutting costs whichever way they can."

Chinese shipyards are faltering as orders have tumbled because of the global excess of commodity, oil and container ships. The surplus fleet and a global economic downturn damped cargo rates and deterred owners from ordering more vessels.

The yards face labor unrest as they pare employees. Rongsheng said some workers who were "made redundant" formed a blockade outside the headquarters of the group's production base in Nantong on July 2. The company has sought financial support from the government even as it holds talks with banks for renewing existing credit facilities.

"The Chinese shipbuilding industry is still facing unprecedented challenges," Rongsheng said in a statement. "Demand in the global shipbuilding market has continued to decline and prices for new vessels have failed to rebound."

Chinese yards are trying to offset the plunge in new vessel prices and orders by expanding their oil-rig business. Rongsheng announced in October its first order to make a tender barge while rival Yangzijiang Shipbuilding Holdings Ltd. got its first rig contract in December.

"A lot of the shipyards in China are now shifting their focus on offshore because they can no longer survive by building ships," Park Moo Hyun, an analyst at E*Trade Securities Korea in Seoul, said. "We're going to see a big exodus to offshore from shipbuilding in China. This could be a very good opportunity for Korean shipyards."

Copyright 2013 Bloomberg.

Hyundai Heavy Industries Completes Factory in Brazil

Norcross, Ga. – Hyundai Construction Equipment Americas announced that its parent company, Hyundai Heavy Industries Co., Ltd. (HHI), completed its first construction equipment factory in Brazil.

The completion ceremony for the factory in Itatiaia, Rio de Janeiro, was attended by Sergio Cabral, Rio de Janeiro state governor; Luis Carlos Ferreira Bastos, mayor of Itatiaia; and Choe Byeong-ku, president and COO of Hyundai Heavy Industries' Construction Equipment Division.

With an investment of $175 million, the just-over 6 million square foot factory has an annual production capacity of 3,000 units including excavators, wheel loaders and backhoe loaders, and plans to increase the capacity to 4,000 units by 2014.

HHI has already received orders worth $60 million for 500 construction equipment units from eight projects in Brazil including the construction of a hydroelectric power plant in the state of Pará and a railway project in Brazil's northeast.

"We believe our construction factory can make contributions to, and grow together with, the Brazilian economy which continues to grow as a center of the global economy." said Byeong-ku.

SitePrep Tech

Korea's Hyundai Heavy Develops High-resolution "Vessel Digital Radar"

Hyundai Heavy Industries said on July 2 that it has succeeded in developing a next-generation "vessel digital radar" that provides resolution twice that of conventional radars.

The radar supersedes its previous version with much improved resolution power, which allows it to detect objects as small as 70 centimeter in diameter from 10 kilometers away.

Its core part, the solid-state power amplifier, has a lifespan of 50,000 hours, more than 16 times that of its predecessor good for 3,000 hours. The scope of its application is also expected to be expanded to military uses, marine and aviation purposes.

The development of the radar is part of a joint project of the regions in Ulsan and Busan, and participated since July 2010 by a consortium of ten entities, including Hyundai Heavy Industries, Electronics and Telecommunications Research Institute, Ulsan Economic Promotion Agency, Korea Marine Equipment Research Institute, and several small- and medium-sized enterprises.

Korea IT Times

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