대한조선주식회사

[July 26, 2018] Visiting Daehan Shipbuilding in Hanam shipyard

Participants of the 28th Financial Law Study Group on Shipbuilding gathered at Seoul Station by 11:45 a.m. on July 6. They gather at Seoul Station for lunch before taking the KTX train to Mokpo. Participants had lunch at a Chinese restaurant and boarded the KTX bound for Mokpo at 12:35.

The KTX arrived at Mokpo Station in about two and a half hours. We joined the Daehan Shipbuilding Law Compliance Management Team at Mokpo Station, who were waiting for the participants of the research group and took a bus to the Haenam Shipyard of Daehan Shipbuilding. While taking the bus to the shipyard, participants glued their eyes to Yudalsan Mountain, Mokpo National Maritime University, the bridge connecting North Port and Goha Island in Mokpo City, Mokpo Bridge, and Mokpo New Port. According to a Daehan Shipbuilding official. It takes about an hour from Mokpo Station to Haenam Shipyard due to heavy traffic jams, but the participants arrived at Haenam Shipyard in 40 minutes.

About 20 participants from the 28th Financial Law Study Group on Shipbuilding went to the Haenam Shipyard of Daehan Shipbuilding. In the conference room, they learned about the current situation and drying process of the ship.

[1st place in Aframax order share in 2015-2017]

Located in Hwawon-myeon, Haenam Shipyard is a medium-sized shipyard established in 2004. It has two in-house factories specializing in block production, a technical education center, and a dormitory. Daeju Group, the parent group of Daehan Shipbuilding, acquired Shinyoung Shipbuilding which was based on Yeosu, in 2004 and established Daehan Shipbuilding. It consists of Park Yong-Deok, CEO of Daehan Shipbuilding, and 20 teams in five categories.

Shin Jae-Beom, who greeted the participants before the seminar, said in a welcoming speech, "We welcome and thank you for your visit to Daehan Shipbuilding," adding, "The shipbuilding industry is in a difficult situation these days, But we have endured well. We received seven orders in the first half of this year, but we plan to receive 10 orders in the second half of this year. "It will not be difficult to achieve the order target.“

So far this year, Daehan Shipbuilding has ten 115,000 dwt petrochemical carriers and seven 113,000-115,000 dwt refined oil carriers. It is recognized as a shipowner in the Aframax tanker market. In particular, 15.1 percent (26) of the 172 Aframax tankers were ordered worldwide from 2015 to 2017, the highest order share in the world, increasing the brand value of major ship types.

[Competitive with high ship quality]

Daehan Shipbuilding is recognized as a company with competitive quality. Song Ki-Myung, head of the management planning team, said, "Last year, we were selected as a quality competitive company and recognized as a comprehensive competitive company in terms of excellent products, customer service, quality, innovation, and management systems.“

In addition, Daehan Shipbuilding is overcoming difficulties by establishing cooperative relationships based on cooperative growth with in-house and outside partners. The Haenam Shipyard and Yeongam Daebul National Industrial Complex now have 43 partners, including the first factory, making panel blocks, and the second factory, making curved blocks, with 2,000 employees.

After the conference, the participants left the conference room and looked around the yard under the explanation of Oh Se-Hyeong, the PM team's General Manager.

Highest safety management, 0.12% disaster rate

Daehan Shipbuilding owns one 600-ton crane and one 1,500-ton crane at the Haenam Shipyard. Oh explained that Daehan Shipbuilding has the 390-square-meter and 146-square-meter-long walls. And blocks which were transported to Haenam Shipyard by barge made to the ship's hull by welding or installed boilers in the walls.

The participants concentrated on Oh's explanation. Participants were curious about the construction process and eager to learn about the actual construction of ships because the research groups visited the shipyard for the first time. Participants got off the bus during the yard tour and took a commemorative photo against the backdrop of the Aframax tanker in the second half of this year.

The 460-meter-long and 72-meter-wide dry dock, which have scheduled to be delivered in the second half of the year, is undergoing painting and other finishing work. A government ship is being built right next to the tanker. The width of the Aframax tanker is 44 meters, and the dock space is about 30 meters apart from the tanker construction space, so Korea Shipbuilding is building a small ship to operate the dock efficiently.

What impressed me was the neatness of the Haenam shipyard. The participants of the yard tour admired the site of the shipyard in Haenam, saying, "It's well organized." habituated Organizing the workplace will not only leads to efficiency but also safety. Daehan Shipbuilding is the industry's highest safety management and has a lower disaster rate than the manufacturing industry. Shipbuilding and repair industries recorded 0.98 percent and manufacturing industries 0.61 percent last year, but Daehan Shipbuilding recorded 0.12 percent, which is significantly lower than the manufacturing industry.

[Preparation of technological capabilities for diversification of ship types]

Daehan Shipbuilding has completed preparations to build various types of ships in addition to the Aframax tanker, which is currently mainly under construction. Daehan Shipbuilding originally built bulk ships from 2007 to 2013, but now that the new bulk ship market has moved to China, it has to change its main construction type. Currently, the Daehan Shipbuilding industry can build better-quality ships than bulk ships built in China, but it cannot compete with China in terms of cost.

In response, Daehan Shipbuilding hinted at the possibility of diversification of ships other than Aframax tankers. The Daehan Shipbuilding Corporation has already completed preparations for the diversification of ship types and has completed preparations for technical capabilities.“

The visit to the shipyard ended with a KTX train bound for Yongsan at 8:55 p.m. at Mokpo Station after dinner with the participants of the research group. The interview was a valuable experience to confirm that Daehan Shipbuilding has high competitiveness in receiving orders for a single ship type and is ready to enter a new market.