Heavy industry upwardly adjusts next year's goals

Domestic heavy industry adjusted sales goals upward despite an obscure future economy.

According to heavy industry company HHI (Hyundai Heavy Industries) on December 4, though business predictions still haven't been articulated, they expect to increase sales to over 8 trillion won next year from their current 7.4 trillion won this year. The company expects that as record high vessel orders received last year would be reflected in sales from next year the profits would also increase from next year.

Samsung Heavy Industries also predicted that it would grow by around 10% this year thanks to highly profitable vessel orders last year. Though the shipbuilding market shrank in the wake of the September 11th attacks, it is expected to recover in the second half next year. Samsung expanded sales goals 10% above this year, focusing on high valued vessels including Liquid Natural Gas (LNG) vessels, Very Large Crude Carriers (VLCC), and off shore exploration rigs. Its research and development division will be sustained with around 60 billion won.

Daewoo Shipbuilding & Marine Engineering (DSME) predicts a 10% increase in ordinary profits over this year and 3.2 trillion won in sales, up from 2.9 trillion won this year. This growth is accounted for by 5 LNG vessels scheduled for delivery next year. The orders for the vessels were received this year.

Especially, R&D spending will increase by about 2% compared to total sales next year in order to support the development of new-generation vessels. DSME invested 1.6% of sales revenues in R&D this year. Sales may shrink to as low as 2 billion dollars from this year's 3.7 billion dollars in the wake of an already unstable economy and pessimistic predictions for next year, expects the company.