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Hyundai Heavy creates control tower for shipbuilding sales activities
By Seo Jee-yeonPublished : Oct. 22, 2014 - 19:46
Hyundai Heavy Industries will create an integrated shipbuilding sales unit in its Seoul office by merging the sales functions of its two shipbuilding-related affiliates ― Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard, the world’s largest shipbuilder said Wednesday.
“The firm’s executive vice president Ka Sam-hyun will lead the control tower and oversee the bidding for shipbuilding orders,’’ a company official said.
The 57-year-old executive, who has spent most of his career in Hyundai Heavy, is considered to be one of the closest aides of the firm’s largest shareholder Chung Mong-joon.
The creation of the integrated shipbuilding sales unit comes with the firm’s downsizing drive, aimed at turning around the company from the sustained losses in its core shipbuilding business.
The shipbuilder has stepped up its reform drive by bringing changes in its organization and business portfolio since July after posting a record second quarter operating loss of 1.11 trillion won ($1.05 billion).
As a part of those plans, Hyundai Heavy has decided to streamline its planning division, which is tasked mainly with developing business strategies and reform plans on a group level, the firm said.
Chung Ki-sun, the eldest son of Chung Mong-joon, who was promoted as a vice president last week, will lead the planning division, Hyundai Heavy said.
The money-losing overseas branches will also be subject to restructuring, it added.
However, Hyundai Heavy will not be undergoing severe layoffs or merge its sub-business units, as it has decided to go ahead and maintain its seven business divisions ― shipbuilding, offshore & engineering, industrial plant & engineering, engine & machinery, electro-electric systems, green energy and construction equipment.
Before Wednesday’s announcement, industry watchers had predicted that the shipbuilder could roll back some of its core businesses to focus on new areas such as green energy.
“The company will continue to seek organizational changes and reforms to get back on track,’’ a company official said.
By Seo Jee-yeon (jyseo@heraldcorp.com)
“The firm’s executive vice president Ka Sam-hyun will lead the control tower and oversee the bidding for shipbuilding orders,’’ a company official said.
The 57-year-old executive, who has spent most of his career in Hyundai Heavy, is considered to be one of the closest aides of the firm’s largest shareholder Chung Mong-joon.
The creation of the integrated shipbuilding sales unit comes with the firm’s downsizing drive, aimed at turning around the company from the sustained losses in its core shipbuilding business.
The shipbuilder has stepped up its reform drive by bringing changes in its organization and business portfolio since July after posting a record second quarter operating loss of 1.11 trillion won ($1.05 billion).
As a part of those plans, Hyundai Heavy has decided to streamline its planning division, which is tasked mainly with developing business strategies and reform plans on a group level, the firm said.
Chung Ki-sun, the eldest son of Chung Mong-joon, who was promoted as a vice president last week, will lead the planning division, Hyundai Heavy said.
The money-losing overseas branches will also be subject to restructuring, it added.
However, Hyundai Heavy will not be undergoing severe layoffs or merge its sub-business units, as it has decided to go ahead and maintain its seven business divisions ― shipbuilding, offshore & engineering, industrial plant & engineering, engine & machinery, electro-electric systems, green energy and construction equipment.
Before Wednesday’s announcement, industry watchers had predicted that the shipbuilder could roll back some of its core businesses to focus on new areas such as green energy.
“The company will continue to seek organizational changes and reforms to get back on track,’’ a company official said.
By Seo Jee-yeon (jyseo@heraldcorp.com)
