Meeting with Nam Joon-woo-President of Samsung Heavy Industry

Samsung Heavy Industries president, Nam Joon-woo, was confident that he would succeed in raising a paid-up capital of KRW 1.5 trillion. He predicted that the company will achieve a target of USD 8.2 billion in orders this year and turn around to turn profitable by recovering sales of 7 trillion won from 2019.

At the press conference held at the Korea Chamber of Commerce and Industry (KCCI) in Seoul on January 16, President Nam Jun-woo emphasized the recovery of the shipbuilding industry and announced the management plan.

"If global oil prices hit USD 70 / bbl (overall trend), the global oil majors will move in the range of USD 50 ~ 60.”

At the end of last year, Samsung Heavy Industries confessed that its sales would drop to KRW 5 trillion this year and that it would have an operating loss of KRW 240 billion. At the same time, it gave a shock to the market by issuing a plan for additional capital increase of KRW 1.5 trillion. The company expects that after 2015, orders will climb to USD 500 million in 2016, which will adversely affect management until last year and this year.

Mr. Nam presented the company with an order target of USD 8.2 billion this year. If the order target is not missed this year, we expect sales to rise to W7trn from 2019 and turn to black.

He said, "The situation has been worse than it was in 2016 when a capital increase of KRW 1.1 trillion was granted and no real rights have been realized successfully." I do not think that the rights offering will fail because the prospect that the shipbuilding industry will recover from next year "He said. Lee Jae-yong, vice chairman of Samsung Electronics, said that it is only possible to participate in the rights offering process when a rights holder is involved.

Meanwhile, he also said, "I do not think at all" about the merger with Samsung Engineering and DSME, which are being raised in the market. He said, "Samsung Engineering has tried to merge in the past but it has been lost, and there is nothing going on now." Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) and Daewoo Shipbuilding & Marine Engineering Co., Ltd. (Daewoo Shipbuilding & Marine Engineering Co., Ltd.) said, "There are many assumptions that there will be synergies when merging with LNG.

Samsung Heavy Industries intends to restructure its labor force this year to reduce the fixed cost burden. In the near future, all employees below the agency will return 10% of base salary wage and decide to carry out regular workforce restructuring. Last year at the end of last year, the number of executives was reduced by 30%, and the number of executives was reduced from 89 to 67 in the entire organization (more than one team).


By Yang Ji Yun galileo@


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