Constructionshows
Hyundai Heavy Industries (HHI) faced a tough year in 2014 and Mr Kwon is anticipating an equally challenging 2015. This is largely down to the persisting global economic stagnation, plummeting oil prices and intensifying competition with neighboring countries such as China (low labor costs) and Japan (weak yen). However, Mr Kwon is confident that Hyundai Heavy Industries can rise above the external difficulties it faces and emerge triumphant – this can be achieved by being one step ahead of its competitors and continue with the design and development of innovative products.
HHI has set its order target at $ 23 billion in 2015. This appears to be a lofty goal for the South Korean manufacturer, but Mr Kwon says that this target is easily reachable if the company makes a concentrated effort to increase its competitiveness. “In 2015, we must turn in more profit to lay the foundation for renewed growth.” said Mr Kwon. “With this in mind, we will make sure that 2015 marks the beginning of our big step forward on the basis of revived competitiveness.”
Mr Kwon has set some objectives for HHI to work towards. “To survive and thrive amid fierce competition it is essential to remain price competitive in our sector. HHI has initiated competence-enhancing efforts for each of its business divisions by launching a special ‘Task Force’. This year, more concrete measures need to be outlined and put into practice. The task of enhancing price competitiveness is a top priority for HHI this year.”
HHI also strive towards a workplace that is safer and systemized. Mr Kwon added, “Production facilities and workers are the most valued assets of HHI, and operation thereof is the barometer of our competitiveness. Cutting out waste and material excesses, combined with systematic operation, will help enhance our product competitiveness.
Last but not least, modernize the corporate culture. Unchanging companies with a bureaucratic corporate culture can discourage talented people from joining the company and may encourage valued employees to leave the company. Now, HHI should seek increased dynamism and energy by driving changes in leaders to realize a sustainable competitive advantage.”
Mr Kwon concluded, “HHIE has time and again triumphed over adversity of one kind or another with unyielding dedication and relentless enthusiasm for the last four decades. If we remain firmly committed to our goals, great results will follow automatically.”