10.5 C
September 20, 2020

Our company has managed to achieve a turnover of more than USD 250 million

Interview with Soon-Gil Hong, President Daewoo-Mangalia Heavy Industries

How was the last year for your business? The turnover you registered?
Fierce competition between shipbuilders, the existence of large unused production capacity, lack of orders, low price war in shipbuilding and very low freight rates were the main factors that have continued to affect the shipbuilding market throughout 2012. Also, the owners have found with great difficulty funding sources given that financial institutions have requested additional guarantees.
In such economic environment, our company has managed to achieve a turnover of more than USD 250 million, diversifying the mix of its products and enhancing control of production costs.
How do you estimate the shipbuilding market will develop in the next period?
Shipbuilding market faces, several years internationally steep drop in demand for new vessels and their prices. Inventories of existing vessels indicate that this trend is possible to continue in 2013. Thus, it is estimated that the decline will be lower than last year.
How extreme weather influenced recorded the activity of production units?
In order to better understand exposure of ship construction and ship repair services to the environmental factors, it should be noted that, over 85% of total production facilities area is represented by outdoor spaces.
In case of very low temperatures, a situation slowly increasing as common in winter it should be noted that:
– At a temperature below -100 C plate welding work stops
– Between -100 C to 00 C before welding work should be used preheating
– Painting at temperatures below -50 C stop and at temperatures above this limit to continue painting operations in confined spaces should be used intensive industrial heating as a measure of mitigating extreme temperatures.
Any transfer maneuver between company`s quays entrance or exit of vessels in case the wind speed exceeds 10m/sec is permitted with important safety measures enforcement.
Also in case the wind speed exceeds 20 m / sec, automatically stop all operations involving cranes.
Fortunately, Mangalia is a reasonable protected area from such environmental constrains for shipbuilding business and this fact is helping our activities to be carried out in standard/safe circumstances.
Which are the most common problems you face?
Recently DMHI welcomed initiatives of Ministry of Economy for calling main industrial players in national economy for enforce industrialization process in Romania
All our major focus issues for company’s mid and long term strategies were summarized and submitted .Such plans and problems are covering field such as business environment, local content, labor market protection, taxes and public investments for specific needs of DMHI.
In Romania there are several large construction sites vessels. We talk about competition in this market?
According to the characteristics of our work in the yard are built large vessels such as container ships, able to carry up to 9,100 TEU units, cape size bulk carriers Aframax tankers and ships for transport vehicles (Ro-Ro) Post Panamax Class. This product mix is relevant for our production facilities and our mother company expertise and technological highteck. As mentioned above, we focus on a large shipbuilding segment, so we can`t speak about actual local competition.
What were the most common requests from clients this year?
Company concentrate its marketing strategy for combining classic commercial ships with other business fields, in order to optimize and secure an acceptable mix of products for which our competitiveness is higher than Far East`s shipyards capability.
How many ships you are building and what type are they? What is the delivery time?
Company`s order book consist in vessels belongs to container carriers class – 6 ships largest ever built in Romania, product carriers and PCTC class- total 4 vessels. This order book delivery dates are between 2013 – 2015 year.
What are the strengths of your site in comparison to other players in this market?
Our site strengths are expressed primarily by highly skilled personnel directly and indirectly productive adaptability to changes imposed by the current conjuncture global shipbuilding market through the facilities of technologically advanced that our site has.
Finally, the know-how efficiently implemented in our company by Daewoo Shipbuilding and Marine Engineering, a well known international brand with whom we won the trust of our customers.

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