Kwon Oh-gap outlines bold vision to counter China’s growing influence in the shipbuilding
In a recent New Year’s address, Kwon Oh-gap, chairman of HD Hyundai, outlined a bold vision for the company in the Year of the Serpent. He emphasized the need for proactive strategies to counter China’s growing influence in the shipbuilding industry. Kwon’s remarks highlighted the importance of collaboration with the United States and the necessity for technological innovation. As the global shipbuilding landscape evolves, HD Hyundai aims to strengthen its position and reclaim market share lost to competitive Chinese shipyards.
Responding to China’s Shipbuilding Challenge
Kwon Oh-gap made it clear that the shipbuilding industry is facing significant challenges from Chinese competitors. He noted that many observers underestimate the rapid growth of Chinese shipyards. These companies have adopted aggressive pricing strategies, which have begun to encroach upon the market share of established players like HD Hyundai. To combat this, Kwon emphasized the importance of unity among the four major shipbuilders under the HD Hyundai umbrella: HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo.
By collaborating in key areas such as technology development, design, and production, these companies can maximize their collective strengths. Kwon stressed that it is essential to optimize these areas further to create advanced vessels that outpace Chinese offerings. He also pointed out the need to reclaim markets that have been lost to Chinese competition. This strategic focus on synergy and innovation is crucial for maintaining a competitive edge in a rapidly changing industry.
Kwon’s call to action is not just about defending market share; it is also about seizing new opportunities. He believes that the shipbuilding sector can benefit from closer cooperation with the United States. This partnership could provide HD Hyundai with the resources and support needed to enhance its capabilities and showcase the strengths of “K-Shipbuilding” on a global stage.
Emphasizing Technological Innovation and Future Investments
Technological innovation is at the heart of Kwon’s strategy for HD Hyundai. He acknowledged that market conditions can shift unexpectedly, making it vital for the company to remain adaptable and resilient. To achieve this, Kwon emphasized the need to nurture talent in design, development, and research. The company is focusing on building a skilled workforce centered around its Global Research Center (GRC). This investment in human capital is essential for driving innovation and maintaining a competitive edge.
In addition to workforce development, HD Hyundai is actively investing in new business ventures. Kwon outlined several initiatives aimed at preparing the company for future challenges. One of these is the establishment of Avicus, which focuses on developing and commercializing autonomous ship navigation systems. This project aligns with the industry’s shift towards automation and digitalization.
Furthermore, HD Hyundai is pursuing the Future of Shipyard (FOS) project, which aims to digitize shipyard operations. This initiative will enhance efficiency and streamline production processes. The company is also exploring opportunities in the defense sector, seeking to expand its footprint in K-defense growth. Other areas of investment include the development of unmanned and intelligent equipment, as well as the construction of a new distribution plant by HD Hyundai Electric.
Kwon also highlighted the company’s commitment to sustainability and innovation through investments in small modular reactors (SMR) and the fuel cell business via HD Hydrogen. Additionally, HD Hyundai is venturing into research and development for new drug development through the establishment of AMC Science. These diverse investments reflect a forward-thinking approach, positioning HD Hyundai as a leader in both traditional shipbuilding and emerging technologies.
