Hyundai Heavy Industries, South Korea

COMPANY PROFILE

Hyundai Heavy Industries, South Korea Profile

Hyundai Heavy Industries, one of the world’s largest shipbuilding companies, is an integrated heavy industries company operating through six divisions: Shipbuilding; Offshore & Engineering; Industrial Plant & Engineering; Engine & Machinery (HHI-EMD); Electro Electric Systems; and Construction Equipment. HHI-EMD is home to the company’s industrial and marine pump operations, but also specialises in diesel engines, HiMSEN engines, propellers and crankshafts, marine steam turbines and turbochargers, diesel power plants, industrial robots, presses, conveyor systems and steel strip process lines. HHI-EMD has been making industrial pumps since 1979 when it started manufacturing under a technical licence agreement with Japan’s Ebara Corp. Major pump products include circulating water pumps; boiler feedwater pumps; feedwater booster pumps; condensate and seawater lift pumps for thermal and nuclear power plants; brine recycle pumps; seawater intake pumps; brine blow down pumps; distillate and public water pumps for desalination plant; cooling water pumps and crude oil transfer pumps for refinery & petrochemical plants; drainage pumps for flood control, irrigation and intake service; boosting pumps for water supply projects; and dry dock dewatering pumps. Pump manufacturing facilities include casting, forging, machining, assembly and testing shops. Analysis

During 2010, HHI–EMD’s machinery business posted its best performance to date as orders rose 51%, making the company a major pump player in the Korean marine pump market and in the global, and particularly the Middle East, power and desalination plant markets. Industrial pumps accounted for 7% of HHIEMD’s US$2283 million in orders in 2010. HHI-EMD’s 2010 sales increased 2.3% to KWn2834.7 billion, while 2010 backlog slipped to US$5312 million from US$5722 million a year earlier.

COMMENT HHI-EMD expects 2011 orders for industrial pumps to be robust, helped no doubt by the division’s strong position in the growing desalination sector worldwide. The Korean pump company is well positioned to capture new market opportunities in this sector. ■

Key Figures (KWn billion) Hyundai Heavy Industries

Year ended 31.12 2008 2007

2010

2009

2006

Sales Of Which: Engine & Machinery

22 405.2

21 142.2

19 957.1

15 533.0

12 554.7

2834.7

2771.5

2522.1

1645.7

1219.6

Cost of Sales Of Which: Engine & Machinery

17 734.8

17997.4

16 812.0

12 976.1

10 973.4

2013.8

1886.0

1829.0

1238.3

965.7

Gross Profit

4670.3

3144.8

3145.1

2556.9

1581.3

Operating Income Of Which: Engine & Machinery

3439.4

2222.6

2206.2

1750.7

878.9

739.7

808.5

613.6

345.6

205.8

Net Income

3761.1

2146.5

2256.7

1736.1

712.8

No of Employees

24 222

24 982

25 240

25 308

24934

Contact Details

Hyundai Heavy Industries Co Ltd, Engine & Machinery Division VP and COO of Engine & Machinery Division: Kwon Oh-shin Pump Sales Department Address: 1 Jeonha-dong Dong-gu Ulsan 682-792 South Korea

Tel: +82 52 202 6191 Fax: +82 52 202 6190 Web: www.hhi.co.kr Web: www.hyundai-engine.com

Recent Events

• In 2010, HHI-EMD delivered large cooling water supply pumps for the Kalinin nuclear power plant in Russia. The order covered eight sets of HHI-EMD’s vertical cooling water supply pumps. • Having developed its own steam turbine to drive industrial pumps, compressors, generators, blowers and fans, HHI-EMD delivered the first driver to the customer in March 2010. • In April 2010, HHI-EMD completed a seven set pump order for the Gecho-One coal-fired thermal power plant in Thailand.

6

Pump Industry Analyst

September 2011