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(LEAD) Hyundai Heavy targets 70 tln won in sales in 2022

All Headlines 15:59 April 16, 2018

(ATTN: ADDS Hyundai Oilbank's IPO plan and possible ship order in last 3 paras)

SEOUL, April 16 (Yonhap) -- Hyundai Heavy Industries Co., the world's biggest shipbuilder by sales, said Monday it aims to achieve 70 trillion won (US$65 billion) in sales in 2022 by focusing on high-end ships and pushing ahead with new businesses.

The 2022 sales target is a big jump from sales of 37 trillion won earned in 2017, the shipbuilder said. Hyundai Heavy is aiming for 37 trillion won in sales this year.

"We are putting a bigger focus on technologies (to sell value-added ships, such as liquefied natural gas carriers) and planning to make an announcement on our new business early next month," Hyundai Heavy Industries Holdings Chairman and Chief Executive Kwon Oh-gap told a press conference.

Hyundai Heavy plans to establish a research and development center in Pangyo, just south of Seoul, by 2021 with an engineering workforce of up to 7,000, Kwon said.

He expects the shipbuilding industry to show some improvement in 2020 though local shipyards won't be as busy as they were before the 2008 financial crisis.

The Ulsan shipyard sold off non-core assets and reduced its workforce through voluntary retirement programs after shipbuilders were hit hard by the financial crisis.

In extended streamlining efforts, the shipyard will continue to shed more redundant and non-profitable jobs this year due to sluggish market demand, the chairman said, without elaborating.

Hyundai Heavy Industries Holdings has affiliates, such as Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co., Hyundai Samho Heavy Industries Co. and Hyundai Oilbank Co.

To raise funds, the holding company will make an initial public offering of Hyundai Oilbank in September or October on the main Korea Exchange, the chairman said.

As for an order to build 20 container ships, with an estimated value of 3 trillion won (US$2.8 billion), to be placed by Hyundai Merchant Marine Co., he said Hyundai Heavy received a request for proposal (RFP) from the shipping company and hopes to win some of the orders.

Last week, Hyundai Merchant sent RFPs to the country's leading shipbuilders and said it will select a shipbuilder, or a couple of builders, by June to build 12 20,000 twenty-foot equivalent unit (TEU) container ships and eight 14,000 TEU container carriers.

Hyundai Heavy Industries Holdings Chairman and CEO Kwon Oh-gap (Yonhap)

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