Hyundai Heavy Industries Turns 30
This year Hyundai Heavy Industries Co., Ltd. (HHI) commemorates the thirtieth year since its founding.HHI, situated on the southeastern tip of the Korean peninsula, had its groundbreaking in 1972 in Ulsan. Before Hyundai Shipyard's operation, Korea was producing only coastal and fishing vessels, accounting for less than 1% of the world shipbuilding market. HHI received a newbuilding order for two 260,000-dwt VLCCs from the Greek owner George Livanos. Though the shipyard was still on the drawing board, HHI started building the VLCCs in parallel with its dry dock, and two years later had the christening ceremony for its first two VLCCs and the dedication of its Ulsan shipyard at the same time.
The opening of Hyundai Shipyard literally marked the beginning of a new era in which Korea was building ships on an international scale. To this day, the inauguration of Hyundai Shipyard still remains a legendary event to many people.
The person principally responsible for the construction of Hyundai Shipyard was Chung Ju-yung, the late founder of the Hyundai Business Group. Chung, who was born into a poor farming family in 1915, is regarded in Korea as an example of the self-made entrepreneur. Starting Hyundai as a construction company in 1947, he lived a very dramatic life and established Hyundai Business Group, with a pioneering spirit and a philosophy endorsing endless hope.
When Chung made the decision to enter into shipbuilding in 1971, Hyundai had neither shipbuilding experience nor a domestic market. moreover, it lacked capital and technology. Naturally, his decision to build the world's largest shipyard was regarded as an impractical and even risky venture by many at home and abroad. At the time, the Korean shipbuilding industry represented less than 1% of the international market, and the largest existing Korean-built ship was of the 17,000-dwt level, built by Korea's then-largest shipyard, the Korea Shipbuilding & Engineering Co. (KSEC), which is now Hanjin Heavy Industries.
To create his shipyard, Chung had to borrow the necessary capital from foreign banks, none of which were willing to extend credit until Hyundai could produce a newbuilding contract for a ship. Chung looked all over the world trying to secure a contract, finally convincing Greek shipowner Livanos that Hyundai could build two 260,000-dwt supertankers faster than any other yard in the world and of good quality, despite the fact that Hyundai's shipyard was still nothing but an architect's drawing.
The Livanos contract in hand, Chung got his first big loan from Barclays Bank, and 60 Hyundai engineers were dispatched to the United Kingdom to train with British shipbuilders. It was with this background that Hyundai broke ground in 1972 for its shipyard in Ulsan.
Hyundai commenced construction of both the 260,000-dwt VLCCs and its dry dock at the same time, an unheard-of feat. In 1974, less than two years later, the opening of Hyundai shipyard and the simultaneous naming ceremony for the two 260,000-dwt supertankers captured the imagination of the international maritime circle, as few people at the time could imagine the world's largest shipyard would emerge from this Korean enterprise.
In this context, the opening of Hyundai Shipyard marked the true beginning of the modern Korean shipbuilding industry.
Since its groundbreaking in 1972, HHI has had remarkable success in shipbuilding, but has also worked hard to expand its business activities in other heavy industry fields. Today, HHI has established itself as an integrated heavy industries company with six business divisions: Shipbuilding, Offshore & Engineering, Engine & Machinery, Electro Electric Systems, Industrial Plant & Engineering, and Construction Equipment.
HHI has taken on many daunting challenges since 1972. Thus far, it has always managed to come out ahead. The challenge of diversifying successfully and broadening its business line is being met by HHI in the true "Hyundai Spirit," defined by the following ideas: Creative Wisdom, Positive Thinking, and Indomitable Driving Force. HHI is determined to see that its Ulsan yard will remain a success story and has undertaken massive efforts to ensure the yard's future growth and prosperity.
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Aerial view of Hyundai Shipbuilding site prior to goundbreaking |  |
Founder Chung Ju-yung discussing the shipyard model with exeuctive from A&P Appledore |
