Samsung expanding capacity

Samsung Heavy Industries plans to resolve its shortage of production facilities in light of the dramatic increase in orders it has experienced in recent years, by building a new mega block assembly factory on a 280,000m2 plot near the Geoje shipyard. The plot is located across from the Geoje Shipyard, divided from the shipyard only by a 2 km wide stretch of water which enables the blocks to be transported by sea.

SHI has set new sales records every year, receiving $6.4 billion worth of orders in 2004, $7.7 billion in 2005, and $12.6 billion in 2006. The Company increased its target for 2007 to $15 billion worth of orders, and it has already landed $12 billion worth of orders so far. These factors have made it absolutely necessary for the shipbuilder to expand its capacity in order to meet this dramatic increase in orders.

The development of the new facilities is expected to contribute considerably to vitalizing the regional economy, by expanding production by $585 million annually, and by directly and indirectly creating about 6,000 new jobs. SHI will start construction in early 2008 and aims to finish the factory by 2010 enabling it to build 70 vessels a year.