The already huge Geoje shipyard is to expand further

Samsung Heavy to expand shipyard to meet rising demand
Geoje shipyard to get 280,000 sq m extension as record orders pour in

 

SHI plans to resolve its issues relating to a shortage of production facilities in light of the dramatic increase in orders it has experienced in recent years, by constructing additional blocks with a 100,000 ton capacity through the securing of a 280,800㎡ plot of land for a new factory near the Geoje Shipyard.

SHI announced that it plans to develop the 280,800㎡ plot, which is located in Hannaeㅡri, Yeonchoㅡmyeon, Geoje City, South Gyeongsang Province (Gyeongsangnamㅡdo) as a block assembly factory by 2010, after the plot was designated as a Special Shipbuilding Agricultural & Industrial Complex.

The plot is located across from the Geoje Shipyard, divided from the shipyard only by a 2kmㅡwide body of water, which enables transport via sea. SHI plans to create a mega block on this site.

SHI has set new sales records every year, receiving USD 6.4 billion worth of orders in 2004, USD 7.7 billion in 2005, and USD 12.6 billion in 2006. The Company increased its target for 2007 to USD 15 billion worth of orders, and it has already landed USD 12 billion worth of orders so far. These factors have made it absolutely necessary for the Company to expand its capacity, to be able fulfill this dramatic increase in orders.

To resolve this issue, Samsung Heavy Industries submitted plans to create a factory plot in the Hannae region in September 2006. The municipal government of Geoje City and the government of South Gyeongsang Province both provided their full support, in the belief that the development of the plot was indispensable in terms of enhancing the global competitiveness of the shipbuilding industry and vitalizing the economy of the region.

The development of the factory plot not only served as a favorable rain in a time of drought to the company, which had been suffering from insufficient space, but also is expected to contribute considerably to vitalizing the regional economy, by expanding production by USD 585 million (KRW 550 billion) annually, and by directly and indirectly creating about 6,000 new jobs.

SHI will complete an assessment of the plot and purchase within this year, simultaneous to seeking approval for its industrial complex due diligence plan from South Gyeongsang Province, the final stage prior to initiation of the construction project. SHI will initiate construction in early 2008, and complete construction by 2010.

CEO Kim Jingㅡwan said, “We have developed a great deal of momentum, as we were able to develop this plot at a time when it was urgent for us to secure sufficient work space, in order to establish construction facilities capable of building 70 vessels by 2010. Expanding the facilities will also make a positive contribution towards the vitalization of the regional economy.”