Headquarters: Ulsan, South Korea
Presenter: Tim Wilson Student ID: 20082901
_________________________________Currently: World’s Largest Ship Builder
with 10% of World Productionhttp://en.wikipedia.org/wiki/Hyundai_Heavy_Industries
현대중공업 ( 주 )
http://koreanship.com/?p=238, http://media.shipspotting.com/SPLENDOR.JPG,
http://www.northernlifttrucks.co.uk/img/hyundai_img3.jpg,http://gswebzone.com/2010/04/currentblips_21.html9
Shipbuilding Offshore & Engineering Industrial Plant & Engineering Construction Equipment Engine & Machinery Electro Electric Systems
HHI’s Newest Internationally Focused Endeavors in Renewable Energy
◦ Wind Electric Power◦ Solar Electric Power
HHIHyundai Heavy Industries
HHI Shipbuildinghttp://www.hyundai.eu/downloads/wallpapers/hyundai-wp16-w.jpg
HHI Offshore & Engineeringhttp://english.hhi.co.kr/media/gallery_view.asp?idx=18&dep=C
HHI Industrial Plant & Engineering
http://english.hhi.co.kr/media/gallery_view.asp?idx=283&dep=D Hyundai Oil Refinery HCU Unit
HHI Construction Equipmenthttp://www.hyundai.eu/downloads/wallpapers/hyundai-wp6-w.jpg
HHI Engine & Machineryhttp://english.hhi.co.kr/media/gallery_view.asp?idx=132&dep=E Hyundai Motors Spot Welding Robots
HHI Electro Electric
http://english.hhi.co.kr/press/news_view.asp?idx=510, http://news.cnet.com/i/bto/20091217/solarcity.jpg, http://english.hhi.co.kr/media/gallery_view.asp?idx=217&dep=F
HHI Enters Renewables: Wind and Solar Electro Power
43%
16%
9%
13%
13%
6%1%
Hyundai Heavy Industries Sales 2009
Shipbuilding
Offshore & En-gineering
Industrial Plant & Engineering
Construction Equipment
Engine & Machinery
Electro Electric
Other Divisions
Focus for Consistent Rev-enue During Economic Down-turn
Electro ElectricInternational Future Growth Potential
HyundaiHI: Octopus Tentacles Chart 재벌
Affiliates:Hyundai Mipo DockyardHyundai Samho Heavy Indust.Hyundai Venture CapitalHyundai FuturesHyundai Corporation
Sales:21,142 Billion KRW (2009)
Assets:24,872 Billion KRW (2009)
Hyundai Heavy Industries: Affiliate Corp. Organizational Chart, showing Ownership and Sales -Annual Report 2009
Chung Ju-yung (1915-2001) founded Hyundai with his brothers
Chung Mong-joon
“He is also the controlling shareholder in Hyundai Heavy Industries Group, the second largest Korean chaebol and one of the largest corporations in the world. He is the sixth son of its founder Chung Ju-yung.” http://en.wikipedia.org/wiki/Chung_Mong-joon
Significant HHI Ownership:Chung Mong-joon 10.8%Foreign Ownership 17.4%Order Status HHI Shipbuild:249 Vessel (Ship) Backlog as
of Dec. 2009 –enough to keep HHI operating into 2012
Forbes #3 Richest S. Korean
Hyundai Heavy Industries Annual Report 2009, http://www.forbes.com/lists/2009/83/korea-rich-09_Chung-Mong-Joon_PPZX.html, Ship Picture not to Scale!!
Hyundai Heavy Industries 2009 Annual Report Financials
Total Assets 24,872 B KRWTotal Liabilities 15,064 B KRWTotal Debt 889 B KRWTotal Shareholders’ Equity 9,808 B KRW
Liabilities-to-Equity Ratio 153.6%Debt-to-Equity Ratio 9.1%All Figures in Billion Republic of Korea Won
HHI’s International Network
HHI has 18 International Overseas Incorporated Firms within its Corporate Umbrella
HHI maintains 16 Overseas Offices
http://www.koreaittimes.com/images/imagecache/large/Hyundai_0.jpg -Not To Scale! -Modified to fit page
Targeted Spending and Cuts –to Compete in an Global Economic Downturn
Capi-tal Ex-
pen-di-
tures in Bil-lions KRW
0
800
1600
2007
2010
2007200820092010
R & D Ex-
pendi-tures in Bil-lions KRW
0
100
200
2007
2010
2007200820092010
2010 Figures are Projected Expenditures Hyundai Heavy Industries 2009 Annual Report
Why did HHI Pursue Global Markets?
http://english.hhi.co.kr/media/advertisement_view.asp?idx=51&dep=B
Hyundai Heavy Industries has very Limited Growth Potential without a Comprehensive International Market Strategy
Economies of Scale are needed to compete in HHI’s MarketsTo Sustain its Competitive Advantage HHI has Pursued New
Technologies and New International Markets
HHI Enters Wind and Solar Renewables
HHI Electro ElectricEnters Renewables
2005. 05 Completed Solar Module Factory
2008. 05 Expanded ~Solar Cell/Module Factory
2009. 08 Completed Wind Turbine Factory http://english.hhi.co.kr/press/news_view.asp?idx=510,
http://news.cnet.com/i/bto/20091217/solarcity.jpg
http://www.hyundai-elec.com/new/eng/about/about2.jsp
Wind and Solar Renewables
HHI is Looking to the Future World and USA Markets in Wind and Solar Renewables
The 2010 Target is $3.6 Billion USA dollars for Electro Solar and Wind Business
Sold First Overseas Order of 6 Wind Turbines to USA Project (2009 Wisconsin)
HHI is currently marketing Solar Electric Panel Systems sized and packaged from small Residential 3kW systems to large Commercial Targeted systems of 250kW
”HHI is Focusing on new and environmentally friendly technologies to keep sustainable growth” –CEO Min & Lee
http://english.hhi.co.kr/press/news_view.asp?idx=510, Hyundai Heavy Industries Annual Report 2009, http://www.hyundai-elec.com/new/eng/about/about2.jsp
Future Business Opportunities
Hyundai Heavy Industries is looking at Governmental plans such as the USA’s plan to satisfy 25% of Electricity demand utilizing renewable sources by 2025. These energy goals will provide extensive energy product and business opportunities for large corporations like HHI.
Competing Globally starts with Quality Control and Accounting
HHI relies on 200 partner business and companies:
“…we relied on 200 partners to meet our… production requirements. As part of our efforts to build win-win relationships with these partners, we provide financial and technical support to ensure their accounting, technical, personnel, and information systems are up-to-date and compatible with our high standards.”
Lau
nch
Pad
for
Kore
an
Sp
ace
Veh
icle
http://www.infolink.com.au/odin/images/242979/KSLV-Satellite-Launch-Vehicle-Pad-Successfully-Completed-by-Hyundai-Heavy-Industries.jpg
#1 Competitor SHI Samsung Heavy Industries
Headquarters: Seocho Samsung Town in Seoul, South KoreaEstablished: 1974Rated Number 2 in World ProductionTwo International Manufacturing Subsidiaries 2009 Sales: 13,095 Billion KRW
http://en.wikipedia.org/wiki/File:Samsung_Logo.svg
Entered Wind Energy 2009
#2 Competitor DSME Daewoo Shipbuilding
Headquarters: Okpo, Republic of Korea Established: 1978Rated Number 3 in World ProductionThree International Manufacturing Subsidiaries 2009 Sales: 12,443 Billion KRWAcquired USA Composite Technology Corp $49.5M
http://www.yourindustrynews.com/directory_images/DSME_Logo.jpg
Entered Wind Energy 2010
#3 Competitor STX Shipbuilding
Headquarters: Jinhae, Republic of Korea Established: 1962Rated Number 4 in World Production16 International Manufacturing Subsidiaries 2009 Sales: 6,180 Billion KRW
http://web.tradekorea.com/upload_file/corp/200812/logo/2008121611593623_8610485.bmp
Any Questions?
http://www.hyundai.eu/downloads/banners/hor-banner-mh.swf, http://www.hyundai.eu/downloads/wallpapers/hyundai-wp17-w.jpg