HHI increasing 2008 output by 25%

Hyundai Heavy Industries (HHI) plans to deliver 25% more vessels this year as it increases production to work through almost four years worth of orders.

The company delivered 11 vessels in January, the highest monthly output in the industry, and the newbuildings were all delivered as much as two-and-a-half months earlier than scheduled.

Shipyards in South Korea, the world’s largest shipbuilding nation, are increasing capacity after they won almost half of the $187.4 billion ship owners spent on new vessels last year. HHI is building two new docks and extending the length of existing ones to meet demand. The shipbuilder delivered six large-sized container vessels, two LNG carriers, two oil tankers and one LPG carrier in January. The company delivered a total of 81 vessels valued at $6.85 billion last year, compared with 73 worth $4.81 billion in 2006. Out of this total, 46 were container ships, 16 oil tankers and 10 LNG carriers.

HHI has an order backlog of about 330 vessels, or 28.3 million gross tons. The shipyard plans to invest 1.64 trillion won for its expansion this year, 41% more than what it spent in 2007.