UANI Continues GAO Campaign with Call for Hyundai Heavy to Pull Out of Iran

NEW YORK, Dec 14, 2011 (BUSINESS WIRE) -- On Wednesday (December 14, 2011), United against Nuclear Iran (UANI) called on Hyundai Heavy Industries (Hyundai Heavy) to end its business activities in Iran.

In August, the U.S. Government Accountability Office (GAO) identified Hyundai Heavy as one of two corporations that is expanding and upgrading Iran's refining capacity, a point of great concern given that Iran's energy sector is dominated by the Islamic Revolutionary Guard Corps (IRGC), a well-known terrorist entity.

In a letter to Hyundai Heavy executives, UANI President, Ambassador Mark D. Wallace, wrote:

Hyundai Heavy's ongoing and expanding business ... directly supports [Iran's] ability to fund an illegal nuclear weapons program and sponsor terrorist activities throughout the world and the United States, as demonstrated by the recent disclosure of an Iranian terror plot to assassinate a foreign official on American soil.

Hyundai Heavy has a long history in Iran, starting with its establishment of an office in Tehran in 1990. Within the past few years, Hyundai Heavy has constructed crude oil tankers for Iran valued at $2.4 billion. Currently, Hyundai Heavy is delivering processing equipment and a project generator to the Arak refinery. According to a report by the U.S. Government Accountability Office (GAO), Hyundai Heavy is one of only two corporations in the world that is expanding and upgrading Iran's refining capacity.

Hyundai Heavy's business operations in Iran's energy sector have attracted particular attention here in the United States because Hyundai Heavy also has extensive business dealings with the U.S. government. In the past 10 years, Hyundai Heavy and its subsidiaries Hyundai Oil Bank and Hyundai Corporation have received more than $350 million in federal contracts, mostly with the Department of Defense. (USASPENDING.gov) Hyundai Heavy has been singled out in the GAO report as one of only two firms involved in Iran's energy sector that also receives U.S. contracts because such activity is inconsistent with the provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ("CISADA").

As part of its GAO Campaign, UANI has called on South Korean conglomerate Daelim and Italian Energy Company Edison, also identified by the GAO, to end their business in Iran.

UANI has requested a reply from Hyundai Heavy by December 19, 2011.

Hyundai Construction new Head-Quarters opens in Georgia USA; plant in works

Hyundai Construction Equipment Americas Inc under the Hyundai Heavy Industries Group on Wednesday (December 7, 2011) opened its new 217,000-square-foot headquarters in Norcross, Ga., which will bring 100 jobs to the area. During an opening ceremony, company president John Lim announced the company will in a few years build a manufacturing plant in Georgia, reported the Gwinnett Daily Post.

Georgia Gov. Nathan Deal joined state and local officials in Norcross Dec. 7 at the opening of Hyundai Construction Equipment Americas Inc.'s headquarters.

Gov. Nathan Deal said the new headquarters and announcement of a new plant show Georgia is a great place to do business, the Gwinnett paper reported.

The company, a subsidiary of Ulsan, South Korea-based Hyundai Heavy Industries Co., is moving its main offices from Elk Grove Village, Ill.

Hyundai Construction Equipment officials expect to invest $10 million in the new headquarters and create 100 jobs over the next five years.  The 217,000-square-foot facility at 6100 Atlantic Blvd. will include warehousing and an employee training center.

"Our new headquarters here in Gwinnett will be ideal as we grow our business for the future," Lim said.

The site on Atlantic Boulevard will sell heavy equipment and house an employee training center.

No additional details were provided about the manufacturing plant.

Future plans include adding a manufacturing plant in Georgia in the next several years to build the company's excavators, forklifts and loaders.

John Lim, president of Hyundai Construction Equipment, said the state's logistical advantages prompted the headquarters relocation.

"We needed a facility that was strategically located not only for access to markets in the Southeastern United States, but to the rest of North America, and to South and Central America as well," Mr. Lim said in a news release.

Company Vice President Kirk Gillette added that tax incentives and the area's educated workforce were factors in the move.

The headquarters opening drew members of the Georgia Department of Economic Development, Gwinnett Chamber of Commerce and Gwinnett County Board of Commissioners, as well as Norcross Mayor Bucky Johnson.

hiring: Senior CAD Operator (Archi/Struct/MEP)



Hyundai Engineering & Construction Co. Ltd

Hyundai Engineering & Construction Co. Ltd., the leading contractor in Korea and ranked 23rd International Contractor (2010), invites qualified applicants in the Philippines for various positions in its new South Beach Mixed Development Project in central Singapore.  Applicants must meet the following minimum requirements:

(Sr.) CAD Operator (Archi/Struct/MEP)
Temasek (Central/South) 

Requirements:

  • Relevant degree/diploma
  • Min. 7 (for Sr CAD) or 3 yrs experience



To apply, please email your CV with recent photograph to
 
Only shortlisted candidates will be notified.


 Non-member
 

Hyundai Engineering work on $600m oil and gas plant in Musandam begins

KHASAB (MUSANDAM): Oman Oil Company Exploration & Production (OOCEP) started work last December 5, 2011 on a green field oil and gas processing plant at Bukha in Musandam governorate. Once commissioned, the natural gas produced by the plant will feed a 120MW power plant coming up in Bukha.

The $600 million gas processing plant, built by Hyundai Engineering Co. Ltd, will get its feed stock from Bukha and West Bukha oil fields operated by RAK Petroleum.

"The total capacity of the gas plant will be 20,000 barrels of oil per day and 45 million cubic feet of treated gas. This project will also entail construction of 23km of subsea pipeline to bring products from West Bukha field to the plant, storage facilities for oil, a jetty for exporting oil and eventually, another four kilometers of export pipeline for the crude oil," Salim bin Zaher Al Sibani, chief executive officer of OOCEP, told visiting journalists, on the sidelines of the foundation stone laying ceremony here Monday 5th December 2011.

The oil and gas processing plant, which is called Musandam Gas Plant, is expected to start operation in the fourth quarter of 2013. This will coincide with the completion of the proposed power plant.

Al Sibani said the processed gas is for building a power plant with an initial capacity of 120MW, which can be scaled up to 240MW. "It is in the design stage and tendering process has already started. We expect construction of the power project to start by early 2012, with the commissioning scheduled in the fourth quarter of 2013," noted the CEO.

Al Sibani expects that additional gas will be available for industries in Musandam.

"We are also planning to inter-connect the Musandam gas grid with the UAE through Ras Al Khaimah."

Currently, oil and natural gas produced from Bukha field goes to Khor Khawair processing plant in Ras Al Khaimah in the UAE.

The OOCEP chief also said that the West Bukha field currently produces only 20 million cubic feet of gas per day.

"However, we are expecting further development in the field as they are drilling additional wells."

This will result in supplying the required 45 million cubic feet. "The plant will initially cater to West Bukha field. However, it can take feedstock from new fields that are going to come up in Musandam."

Additional supply

He noted that the development of blocks 17 and 40, which are part of Musandam governorate, will help in additional supply of natural gas for the processing plant. "We understand that PetroTel will execute appraisal and exploration activities at block 17 by 2012."

The foundation stone laying ceremony was held under the auspices of Sayyed Khalifa bin Al Mudras bin Ahmed Al Busaidi, the governor of Musandam, and was attended by Choe Jonge hyun, South Korea's Ambassador to the Sultanate, and Sang-Rok Sung, senior executive vice president of Hyundai Engineering Co. Senior officials from OOCEP and Hyundai Engineering Co also attended the event.

Rwanda President Kagame visits HYUNDAI Conglomerates in South Korea

Ulsan, Seoul – As partial of his 3 day revisit to South Korea, Rwanda President Paul Kagame currently visited a Hyundai Heavy Industries and Hyundai Motors Automobile Plant formed in Ulsan, Seoul, where he was shown around a opposite facilities, including shipbuilding, offshore and engineering, construction Equipment and Green Energy among others. President Kagame also toured a Hyundai vehicle production facility, a world’s fourth largest producing 1.6 million units annually.

Rwanda’s Ambassador to Korea, Eugene Kayihura, forked out that Rwanda has a lot to learn from a multilateral company;

“The President’s revisit to Hyundai serves on one palm as training believes and on an other palm to plead investment in a good lakes region, with Rwanda as a hub. With a heading tellurian association such as Hyundai in a region, this means pursuit creation, innovation, trade and skills transfer. Another area we are deliberating is a probability of organizing internships during Hyundai for Rwanda vocational students as partial of a believe pity programs”

Founded in 1947 and headquartered in Seoul Korea, a association is globally famous for a Hyundai Motor Company multiplication and shipbuilding. Current President of Korea, Lee Myung-bak was a former CEO of a Hyundai Engineering and Construction.

This Friday, President Kagame is report to revisit dual some-more sites in Seoul; Samsung and Korean Internet and Security Agency (KISA).

Hyundai Heavy Introduces HiBallast System

Hyundai Heavy Industries, the world's biggest shipbuilder, received final test approval from the Korean government for eco-friendly electrolysis HiBallast System on November 27, 2011.

Ballast water is seawater used to stabilize the ship when loading/unloading cargo and to maintain optimal vessel speed. The seawater can contain bacteria, local plankton, mud, and sand from the unloading port where the ballast water has been taken in. As the ballast water is released, it can have an impact on the marine ecosystem.

HiBallast system can treat seawater by filtering and sterilizing bacteria and plankton bigger than 50 µm through electrolysis. The HiBallast system can sterilize 8,000 cbm of seawater per hour, reduce power consumption, and extend the life of the ballast.

The new HiBallast system is the second ballast treatment system Hyundai Heavy has developed. The EcoBallast system received final test approval in March. It sterilizes seawater using ultraviolet rays instead of electrolysis. Hyundai Heavy has already received orders for HiBallast and EcoBallast system to be installed 30 ships.

The International Maritime Organization has mandated that all new ships to be delivered from 2012 must have an approved ballast water treatment system installed. Driven by international regulations, the market for ballast water treatment systems is expected to grow to over USD 13 billion by 2016.

Hyundai cars transforms in two decades

Top Gear with Richard Wiley

Less than two decades ago, the name Hyundai hardly registered on the average car buyer's radar, let alone in the desirability stakes.

Fast forward to the end of the first decade of the 21st century, and the name Hyundai doesn't just register, it has earned for itself a desirability factor which has blossomed as models penned by Head of Design Peter Schreyer (ex Audi) have found their way onto the market.

Founded in South Korea in 1947 as the Hyundai Engineering and Construction Company, another 20 years were to pass before the Hyundai Motor Company was established. 

The first car off the line was a Cortina built in association with Ford in 1968, but when the time came to create a home-grown car, Hyundai hired George Turnbull, formerly of British Leyland, to help them on their way. 

Being a little cynical, I would have rated the association with British Leyland as something of a hand brake! The first fruits of their labor were seen in 1975 in the form of the oddly-named Pony which was styled by Giugiaro of Italy and fitted with a Mitsubishi engine, so it was something of a hybrid but not in the sense we use that description today!

It wasn't until 1991 though, that Hyundai gained some form of independence when it designed and produced its own engine and transmission, notwithstanding that the now well-known Sonata badge was first attached to a car in 1988.

The 90s in fact marked a period of great expansion and included the establishment of plants outside Korea, but perhaps the single most important marketing decision was taken in 1998. For the US market, Hyundai introduced an unprecedented 10 year or 160 000km warranty on new cars. It also embarked on a major quality drive designed to consign pre-conceptions of "Korean quality" into the dustbin and at the same time, bought Kia Motors which had fallen on hard times.

Since then, the Hyundai/Kia conglomerate has grown into the fourth largest auto group in the world with combined sales of 3.6 million units in 2010. Their cars are sold in 193 countries through some 6 000 dealerships and showrooms with around 75 000 employees involved!  Further, the main Hyundai plant in Seoul is the world's largest single factory with the potential to produce no less than 1.6 million units annually. But the emphasis is clearly on global expansion, witness the fact that the company has no fewer than seven Research and Development centers around the world - three in Korea and one each in Germany, India, USA and Japan.

There's no doubt that in terms of stylish execution and inherent quality, Hyundai has transformed and is widely regarded by the establishment as the biggest single threat in the middle to lower segments, especially as the value aspect has not been overlooked during the course of the transformation.

As a personal comment, I feel that Hyundai should now turn towards motor sport as a tool to cement its rising reputation.  Sure, it has been involved in pretty serious rally competitions but the visibility factor of rallying is relatively low. Just look how the unlikely Chevrolet Cruze has left an indelible mark on the World and British Touring Car Championships and imagine the publicity Hyundai would reap if it were to meet the GM challenge head on.  Even better, how about making engines for single seater championships around Europe as VW, Mercedes-Benz, BMW and Renault do to great effect. It would be the icing on top.

Everyone seems to be an expert when it comes to motoring matters, or so they think!  These self-same experts are probably the very people who mistakenly refer to those tubular-shaped devices attached to the car's underpinnings as "shock absorbers".  Sadly, this is not the function of these critically important components at all and I'm at a loss as to how they came to acquire this generic name.

The function of the "shock absorber" is not to achieve what its name suggests but instead, it is to control the rebound energy generated when the springs uncoil or flex AFTER the car has hit an irregularity in the road.

I'll try and be as simple as I can on this subject as it involves the basic laws of physics, a subject which I always struggled with in the classroom, but when your car hits a bump in the road, the impact moves upwards through the structure.  Without springs, the bang and the crash reverberating through the structure would be horrendous so springs are fitted to absorb or soften the blow. 

The softer the spring, the more absorbent it is but the payback comes when the spring uncoils or rebounds after compression. I'm sure you've heard about the principle of "equal and opposite reaction" which tells you that if two objects collide, for example snooker balls, the energy generated by the impact is shared by both balls.  So a ball struck half right say, will travel half left and the striking ball will travel half right.  At least, this will happen when the pros you watch on the TV get to work sinking the whole table! 

So it is with the chassis of your car - as the spring rapidly recoils, invariably beyond its normal resting position initially, and then oscillates as the energy is dissipated, so the body of the car reacts in sympathy by bouncing up and down. A standard "shock absorber" test involves lifting the corner of a stationary car and letting it go suddenly. Even with good "shocks", the car will bounce very briefly before it regains its earlier peaceful disposition but if the "shocks" are kaput, you'll be amazed at how much bouncing goes on after you've let go.

This tells you what happens at speed on the open road when you hit a bump or a dip or when you crest a rise.  The energy unleashed is decidedly large and is initially absorbed by the spring which then unwinds and unleashes the energy in the opposite and upward direction.  This rebound energy needs to be quelled or damped and that's exactly why the proper name for a shock absorber is DAMPER.

A damper that's past its best is dangerous in the extreme as the oscillating movements can lead to complete loss of steering control and badly worn tyres.  So, if your own car behaves as though its riding a nasty swell in Lake Kariba, do yourselves a favour and have the dampers sorted out.  If you see another car behaving in this manner, keep clear as the driver will have little control of brakes or steering.

Hyundai 140 Wins the 2011 EurocarBody Golden Award

At the 2011 EuroCarBody Conference, held near Frankfurt, Germany, the Hyundai i40 has been presented with the Golden Award, beating off nine of Europe and Japan's largest automakers.

The EuroCarBody awards, hosted by Automotive Circle International, were judged by more than 500 attending delegates including industry experts from across the world.

The Hyundai i40 was praised by judges for the comprehensive engineering and effective development of materials and the car's production efficiency and scored 37.98 out of a maximum of 50 points. Second place went to the Audi A6, which received a score of 35.86 and third place went to the Mercedes Benz B-Class with a score of 34.66.

The judging panel highlighted the Hyundai i40's use of high-strength steel and improved joints in the structure resulting in a lightweight body which has high energy absorption efficiency, providing increased safety to occupants in the event of an accident.

Allan Rushforth, Senior Vice President and COO of Hyundai Motor Europe, commented, "Winning the EuroCarBody Golden Award demonstrates our commitment to providing the highest levels of safety for Hyundai customers. The i40 was recently awarded a maximum five-star rating in the Euro NCAP crash test, and this latest award is further independent evidence that our technology is market-leading. We will continue our efforts for ever-better technology to protect passengers and improve all aspects of vehicle performance."

The Hyundai i40 available in Estate and Saloon (from next year) has been specifically designed and engineered for the European market.

Hyundai i40 now priced GBP 18,395.00 - 25,859.00 

Hyundai Engineering will to Build $180 Million Power Plant in Bangladesh

October 7, 2011

South Korea’s Hyundai Engineering Co. and Daewoo International Corporation will sign an accord with Bangladesh’s Ashuganj Power Station Co. to build a 225-megawatt power plant in the South Asian country.

The project will cost 13.61 billion taka ($180 million), Mizanur Rahman, company secretary at Ashuganj Power, said in a phone interview. Standard Chartered Plc will finance 80 percent of the cost, he said. Tough

Bangladesh, where more than half of the 156 million people don’t have access to electricity, plans to spend $10 billion, or 11 percent of its gross domestic product, in a decade to increase generation capacity and attract overseas investment.

The plant is being built in Ashuganj, 90 kilometers (56 miles) north-east of the capital Dhaka, to supply power to the national grid.

The government awarded Wednesday (October 5, 2011) the contract for construction of a 225-megawatt (mw) gas-fired combined cycle power plant project at Ashuganj to South Korean consortium, Hyundai Engineering Co and Daewoo International Corporation.

State-owned Ashuganj Power Station Company Ltd (APSCL) has signed the deal with the South Korean consortium to construct the power plant on a turn-key basis by December, 2013.

The power plant will be built at a cost of Tk 13.61 billion.

"Awarding the 225 mw Ashuganj power plant is a part of our commitment to build base-load power plant under the mid-term plan," Prime Minister's Energy Adviser Dr Tawfiq-e-Elahi Chowdhury said.

The power ministry had earlier approved building of diesel and furnace oil-fired power plants as part of the government's immediate and short-term plan for a quick-fix, for augmenting electricity generation across the country, he said.

"We have not forgotten to install more efficient base-load power plants and diversify the country's energy sources, encourage energy conservation and boost renewable energy use," Mr Elahi said.

This is the 43rd agreement to build a total of 45 power plants to generate around 4500 mw of electricity under the present Awami League-led government, said Power Secretary Md Abul Kalam Azad.

Around 1600 mw of additional electricity has been added to the national grid since taking office of the government in January 2009.

Some 700-800 mw more electricity will be added to the national grid by December 2011, he said.

Executive Senior Vice President of Hyundai Engineering Co Kim Ok Chul, Executive Vice President Daewoo International Corporation Han Chan Kun and APSCL Managing Director signed the deal on behalf of their respective sides to the agreement.

South Korean Ambassador in Bangladesh Cho Tae Young, State Minister for the Ministry of Liberation War Affairs Tajul Islam and Bangladesh Power Development Board (BPDB) Chairman ASM Alamgir Kabir also spoke on the occasion.

$3.7 Billion Olympic bullet Train for South Korea' Set to Reverse Construction Slump

South Korea’s hosting of the 2018 Olympics is triggering an $8.4 billion building boom that will expand the nation’s high-speed rail network and create a winter- sports destination targeting millions of Chinese tourists.

Organizers will spend $3.7 billion on a train running from the central city of Wonju to host cities Pyeongchang and Gangneung in the east. Another $1.4 billion is earmarked for six athletics venues, accommodations and media facilities, according to International Olympic Committee documents.

Those plans may benefit the largest Korean construction companies, which are grappling with weak home sales and tightening credit. Hyundai Engineering & Construction Co., the largest builder; Samsung C&T Corp. (000830), the second-biggest; and Hyundai Rotem Co., the nation’s biggest maker of train cars, all expressed interest in bidding for Olympic contracts.

“The domestic construction industry has been going through hard times in recent years because of the slump in the housing market,” said Byun Sung Jin, an analyst at Mirae Asset Securities Co. in Seoul. “It will not only breathe some life into the region but also to the entire nation.”

Revenue from the Olympics may help builders fund new projects after banks pared lending for real-estate developments by 26 percent in the three years through 2010 on concerns about bad loans, according to data from the Financial Supervisory Service, the financial regulator.

$60 Billion Benefits

The average price for new homes fell 8.9 percent last year, the biggest decline since 2002, Byun said. The economy is likely to expand 4.3 percent this year, down from an earlier estimate of 4.5 percent, the central bank said July 15.

Hyundai Engineering has gained 2.3 percent, compared with a 0.75 percent decline in the benchmark Kospi Index, since South Korea was awarded the games July 7. Samsung C&T has gained 9.7 percent and Doosan Heavy Industries & Construction Co. 5.3 percent in the same period.

The 2018 Olympics will generate 21.1 trillion ($19.8 billion) directly for Asia’s fourth-largest economy, with another 43.8 trillion won in investment, tourism and branding coming in the decade after, said Park Tae Il, a senior research fellow at Hyundai Research Institute in Seoul.

Other cities have struggled with the aftermath of hosting the Olympics, prompting an IOC study. Vancouver, site of the 2010 winter games, reduced prices on condominiums in the former athletes’ village by an average of 30 percent to spur flagging sales, the Canadian Press reported in February.

Avoiding White Elephants

Beijing, host of the 2008 summer games, built a shopping mall and underground tunnel near its Olympic stadium to help cover operating costs, the state-run China Daily newspaper reported last year.

“The government will have to be prudent in what projects they spend on so they don’t gather dust after the games are over,” Byun said. “We’ve seen that happen before and I’m pretty sure that is on the top of the list of things the government doesn’t want to repeat.”

South Korea was chosen over Munich and Annecy, France, in its third try for the winter games. The nation previously hosted the 1988 Summer Olympics in Seoul.

Most athletic events -- including skiing and bobsledding -- will be in Pyeongchang, about 130 kilometers (80 miles) east of Seoul in the Taebaek mountains. Skating and hockey competitions will be held further northeast in Gangneung on the east coast.

High-Speed ‘Catalyst’

More than $1.4 billion was spent preparing Pyeongchang for unsuccessful bids for the 2010 and 2014 winter games. Seven venues were built, and two of them -- for curling and snowboarding -- need upgrades for the 2018 Olympics.

The centerpiece of the forthcoming plan is a 113-kilometer train connecting Wonju with Pyeongchang and Gangneung. The existing railroad bypasses Pyeongchang, so travelers from Seoul must get off at Wonju and take a bus the rest of the way.

That journey takes about two hours. The new train, which can travel at speeds up to 250 kilometers per hour, will cut that to 68 minutes, according to the IOC’s bid assessment.

Going to Gangneung will take another 12 minutes. Construction could start later this year, with completion scheduled for 2017.

“This rail line is absolutely necessary for the games,” said Lim Jong Il, deputy director of the high-speed rail division at the Ministry of Land, Transport and Maritime Affairs. “The new Wonju-Gangneung railway can act as a catalyst to expedite the national rail-line projects.”

Decade-Long Plan

South Korea has embarked on an 88 trillion-won plan this decade to extend passenger and cargo networks by 39 percent to 4,934 kilometers. About 16 trillion won is for high-speed trains, including the Olympic line and another linking Seoul with Mokpo to the south.

Existing service between Incheon Airport and Seoul will be upgraded so Olympic visitors can take one high-speed train all the way from the airport to the venues.

The government plans to move about 27 percent of the population by trains by 2020, compared with 16 percent now. The percentage of cargo moving by rail would increase to about 19 percent from the current 8 percent.

“Korea needs to build up its rail network because it will help to move not only people but cargo faster and more efficiently,” said Heu Moon Wook, an analyst at KB Investment & Securities Co. in Seoul. “Construction companies will play a big role because they will not only have to lay down the tracks but they will have to build bridges and make tunnels to go through mountainous areas.”

Targeting Chinese

Hyundai Engineering, Hyundai Rotem and Doosan Heavy, South Korea’s biggest maker of power equipment, said in e-mails they believe the Olympics will generate business for them.

“With the recent decrease in public bidding projects, we are definitely interested in the related projects,” said Sohn Soo Keun, a spokesman for Samsung C&T.

Organizers will spend $927 million on Olympic villages and broadcast centers, and $461 million on new venues -- two hockey rinks, two skating rinks, an alpine ski run and a track for the bobsled and luge, according to the bid. The venues should be ready for testing by the end of 2016, said Jeong Hong Sub, a spokesman for the Olympic bid committee.

South Korea told the IOC it wants the games to leave behind a winter-sports destination for Asian tourists. The primary target should be the Chinese, James Rooney, chief executive officer of Market Force Co. in Seoul, said on Bloomberg Television.

About 8.8 million people visited South Korea last year, including almost 1.88 million from China, according to the Korea Tourism Organization. The number of Chinese visitors may reach 3 million by 2012, according to the Ministry of Culture, Sport and Tourism.

South Korea’s tourism sector is “significantly underdeveloped” because the nation has concentrated on its “tangible goods” sectors, Rooney said. Because of the Olympics, the nation may attract as many as 50 million visitors by 2025, potentially generating $50 billion-$100 billion in annual spending, he said.

“The tourists that are going to be active in this part of the world are going to be Chinese tourists,” Rooney said. “They like to spend money.”

To contact the reporters on this story: Rose Kim in Seoul at rkim69@bloomberg.net; Kyunghee Park in Singapore at kpark3@bloomberg.net

To contact the editor responsible for this story: Brett Miller at Bmiller30@bloomberg.net

Hyundai Motor workers disciplined for online Activities at work

An internal audit by Hyundai Motor Co. revealed that 97 workers have accessed Internet gambling sites at work, leading the company to discipline them for improper use of company computers, corporate officials said Sunday.

Facebook and Youtube access are also ban since March 2011.

The audit was launched in April after the company received a whistle-blower's tip that some employees on production lines were betting online with office computers while they were on the job, company officials said.

Thirty-five workers at Hyundai's plant in Asan, about 100 kilometers southwest of Seoul, were disciplined for accessing gambling sites, and another 62 workers at Hyundai's main plant in Ulsan will soon be punished, officials said.

"While the fact of cyber gambling was uncovered by an internal tip-off, the number of employees who gamble over the Internet at work appears to be higher (than reported figures)," a company official said on the condition of anonymity.

In particular, the audit found that 13 former and current union representatives were among the workers accused of accessing Internet gambling sites.

The audit comes as Hyundai Motor has been at loggerheads with its powerful union over its move to cut the number of its full-time union members under a new labor law that took effect last year.

Earlier this month, Hyundai Motor's Asan plant was forced to halt output for two days after unionized workers walked off the job after one of their colleagues committed suicide.

Police confirmed that the 49-year-old union representative, identified only by his surname Park, hanged himself in a bathroom of the plant, leaving a suicide note that blamed Hyundai's management for interrupting his duties as a union member.

 

Hyundai Heavy 500KW completed

Hyundai Heavy Industries, the world's biggest shipbuilder and Korea's largest green energy provider, completed the site trial of a prototype 500 kW tidal current power system at Uldolmok Passage in Jeollanam-do, southwest Korea last June 10, 2011.

 Tidal current power is a form of hydropower that converts the kinetic energy of the tidal currents into electricity using turbines. This type of green energy is now in the spotlight thanks to its weather-proof and sustainable power generating capability.

Hyundai Heavy's prototype tidal current power system directly connects a tidal turbine, a gearbox, and a generator for power transmission.

The system can operate regardless of current direction using a specially designed turbine system. After completing factory and basin tests last year, the Company successfully produced target power generation from site trials this May.

Based on the data collected from the trials, Hyundai Heavy plans to pursue tidal current power farm projects by scaling up power generators. The Ulsan-based company is also part of the government-backed National Project for Developing MW-class Tidal Current Power Farm with other Korean companies. The project is due to be completed in 2014.

 

Hyundai Heavy Industries will bid to control back the Hyundai Hynix

Hyundai Heavy CEO Mong Joon CHUNG brother of Hyundai Motors CEO Mong Koo CHUNG plan to take control over Hynix Semiconductor the formerly part of the Hyundai group which span off in 1997 during the Asian economic downturn.  Hyundai Hynix creditors plan to approach investors this month to sell a stake in the South Korean chipmaker and could offer loans to potential bidders after failing to find a strategic buyer for 3 times.

Creditors rescued Hynix after it almost collapsed in 2001 under the weight of its debts. However, they have since struggled to find a local strategic buyer for Hynix, having excluded foreigners from the auction because of worries about sensitive technology information leaking outside of the country.

State-run Korea Finance, the chipmaker’s largest shareholder with a 5.5 per cent stake, said creditors aimed to sell their 20 per cent holdings, worth about Won3,120bn ($2.5bn) by current market value, by the end of this year.

Korea Finance said that to help overcome financing concerns, creditors would offer a credit line to a buyer to reduce their investment burden.

Creditors are eager to sell their remaining stake to recoup an original investment worth $4.6bn, as Hynix shares have gained 15 per cent this year after more than tripling in 2009 on rising chip prices.

Creditors have had tried three times in the past year to sell their stake in Hynix, the world’s second-largest memory chipmaker. But concerns about the huge investments required after acquiring the company are believed to have deterred potential buyers

The only company to have shown firm interest in buying Hynix was Hyosung, a mid-sized Korean conglomerate focused on fibre and chemicals. However, Hyosung dropped its bid for Hynix last year because of financing problems.

In March the creditor group offloaded a 6.7 per cent stake in Hynix for Won923.2bn through a block sale.

Creditors have said that if they cannot find a buyer for the rest of their stake by the end of this year, they plan to sell it to a private equity fund or in the market.

Hyundai’ Hynix recently announced a plan to raise its capital expenditure by a third to Won 3,050 billion this year to take advantage of a strong recovery in the global technology sector. It came after industry leader Samsung Electronics doubled its investment in semiconductors to Won11, 000 billion in an effort to cement its technology lead over rivals.

Unconnectedly, creditors are also looking to begin the sale this month of a stake in Hyundai Engineering & Construction, South Korea’s biggest builder. The Korea Finance-led group – which holds a controlling 38.6 per cent stake – aims to select a preferred bidder by as early as September.

Creditors took over Hyundai Engineering & Construction in the wake of the Asian financial crisis at the end of the 1990s. Korea Finance is the builder’s largest shareholder with an 11.2 per cent stake.

Shares in Hyundai Engineering have fallen more than 20 per cent so far this year due to the slump in the local construction industry.

Hyundai Heavy Industries, the world’s largest shipbuilder, is considering a bid for a controlling stake in Hynix Semiconductor worth about $2.8bn as creditors launch another attempt to sell the leading memory chipmaker

“We are looking at the sale with interest,” a Hyundai Heavy said, responding to market rumors that the shipbuilding giant would take over its former affiliate

Hyundai Heavy is looking to diversify their interests away from shipbuilding into electric power generation, but analysts say the deal could also reflect its desire to rebuild the family conglomerate, or chaebol. Hynix was formerly known as Hyundai Electronics.

Nine creditors-turned-shareholders, including Korea Exchange Bank, are planning to launch a sales process this month for a 15 per cent stake in Hynix, in their third attempt to find a strategic buyer in as many years.

The stake has a stock market valuation of $2.4bn but analysts estimate it is worth about $2.8bn because the rest of the shares are widely dispersed, giving the owner the chance to control the company.

Hyundai Heavy declined to comment on why it would be interested in Hynix but analysts said the shipbuilder apparently wants to rebuild parts of the former Hyundai family conglomerate, which had been split up in the aftermath of the Asian financial crisis in 1997 or Hyundai Heavy is just planning to continue their diversification as Hyundai Motor Groups did after acquiring the Hyundai Engineering & Construction .

“Some say that Hyundai Heavy wants Hynix for its renewable business such as solar power but it seems a little far-fetched,” said Jae Lee at Daiwa Securities. “There seems to be no clear business link but the company may want to take back part of the former Hyundai empire, like in the case of Hyundai Engineering & Construction.”

Hyundai Motor Group, a former affiliate of Hyundai Heavy Industries, this year took over Hyundai Engineering & Construction Last April 2011.

 

Jung Soo-hyun - New President of Hyundai Engineering & Construction (HDEC)

Jung Soo-hyun – New President of the Hyundai Engineering & Construction (HDEC)

Hyundai Motor Group named Hyundai Amco president Jung Soo-hyun to lead the Hyundai Engineering and Construction (HDEC).

Just last week Mr. Joong Kyum Kim president of Hyundai Engineering & Construction (HDEC) filed his resignation after few year of service to the Korea’s largest builder.

The Hyundai Motor Group acquired Hyundai Engineering & Construction, the nation’s top builder last April 2011. Hyundai Amco is the construction affiliate of the Hyundai Motor Group.

The 59 year old new president is also a veteran who has worked in the construction industry for more than 30 years since he graduated from Seoul National University. He took charge of Hyundai Amco earlier this year.

The Hyundai Motor Group also promoted Sohn Hyo-won, vice president of Hyundai Engineering & Construction, to lead the Hyundai Amco.


Cars of Hyundai Motors and Kia Motors take 10% of U.S. market

Hyundai Motor Co. and its affiliate Kia Motors Corp. saw their U.S. market share exceed 10 percent for the first time in May, mainly thanks to robust demand for new models.

The automakers under the wing of Hyundai Motor Group sold 107,426 vehicles in the United States last month, up 21 percent from a year earlier.

They captured 10.1 percent of the American market, where the total sales of global automakers came to about 1.06 million units.

Kia Motors sold 48,212 units, posting a growth rate of 53.4 percent. Hyundai Motor posted 21 percent in yearly growth with sales of 59,214 vehicles.

“We had brisk sales in overseas markets including the U.S.,” a Hyundai company spokesman said. “By strengthening power as a global enterprise, we will continue to achieve the sales goal.”

The Genesis sedan’s sustained growth trajectory continued with May representing the 23rd consecutive month of year-on-year sales increases for Hyundai’s premium car.

The Equus sedan continued its strong launch, with sales and market share exceeding targeted levels.

While Hyundai sales were strong in all states of the U.S., California was the brightest spot, with sales up 95 percent for the first five months, compared to 2010.

But performance was below predictions from research centers that the Korean automotive group would grab third place in the sales rankings in May.

U.S. auto giant General Motors topped the list with sales of 221,192 units, followed by Ford Motor with 191,529, Chrysler with 115,363 and Japan’s Toyota Motor with 108,387.

“While we’ve still got a lot of work to do, we’re getting good responses to our consumer-driven Hyundai recipe ― assurance programs like Trade-In Value Guarantee and America’s Best Warranty, industry-leading fuel economy, and the freshest designs in the industry,” Hyundai Motor America’s president and CEO John Krafcik was quoted by a foreign news agency as saying.

During the first quarter of the year, Hyundai Motor Group’s share of the U.S. market for midsized sedans rose to a record high, industry data showed.

Meanwhile, according to industry data, 66,554 units of Hyundai Motor’s Sonata and Kia Motors’ K5, known as the Optima in overseas markets, were sold in the U.S. during the first three months of the year, giving the companies a combined midsized sedan market share of 15.1 percent.

In terms of units sold, Hyundai Motor Group’s first quarter midsized sedan sales increased 62.3 percent compared to the 41,013 units ― the Sonata and the previous Optima which was marketed as the Lotze in Korea ― sold during the same period last year.

 

Hyundai Heavy Q1 Net Profit up 21%

Hyundai Heavy Industries, the world's biggest shipbuilder reported a net profit of KRW 903 Billion, an increase of 21% from last year.

Sales rose to 16.92% KRW 6.3 Trillion won with operating profit up 10.99 % to 991.8 Billion. Hyundai Heavy's annual sales target for this year is KRW 26.9 trillion and new orders of USD 26.6 Billion

The company's operating profits were buoyed by increased sales in the shipbuilding and engine & machinery business, rebounding and construction equipment sales in the Chinese market.

The first quarter performance results were the first under which the company applied a new International Financial Reporting Standard

Hyundai Heavy Industries Co Ltd is expected to enjoy strong orders momentum, analysts said, after the company posted a forecast-beating quarterly operating profit on lucrative ship and offshore plant orders.

Hyundai was likely to benefit from growing demand for high-value products such as large-size containers, drillships and LNG carriers despite competition from Chinese peers, analysts said.

"A solid cycle for the offshore sector is coming, which should strengthen fresh order flows," said HI Investment & Securities analyst Hur Sung-duck.

The world's largest shipbuilder logged a 992 billion won ($924.2 million) operating profit for the January-March quarter, up 11 percent from 894 billion won last year.

Analysts forecast an average operating profit of 942 billion won operating profit, according to a survey by Thomson Reuters I/B/E/S.

Total revenue rose 17 percent to 6.3 trillion won.

A recent increase in the cost of steel plates is expected to crimp shipbuilder operating margins ahead. [ID: nL3E7FJ05O]

However, backed by a strong outlook for other businesses, analysts said Hyundai Heavy would be able to minimise the cost burden through its diversified portfolio, which ranges from offshore facilities to electrical equipment.

"The company's operating profit was buoyed by increased sales in its shipbuilding and engine & machinery operations, and rebounding construction equipment sales in the Chinese market," Hyundai said in a statement.

Shares in Hyundai have risen 7.8 percent over the past three months, outperforming the overall market's 4.8 percent gain. ($1 = 1073.400 Korean Won) (Reporting by Ju-min Park; Editing by Chris Lewis)

See also our official website news:  http://english.hhi.co.kr/press/news_view.asp?idx=651

 

Investors Service upgraded the Hyundai Engineering' s Credit Rating to 'A +'

Hyundai Engineering new  “A+” Credit Rating

Korea Investors Service recently upgraded the Hyundai Engineering Co Ltd’s credit rating from “A” to “A+” within 6 month period. The new levelled up rating of Hyundai Engineering outlook as “Stable” is also an effect of the merger between the Hyundai Motors and Hyundai Engineering along with its continuing growth and expansion in the overseas projects.

Hyundai Engineering is founded in 1974 as Hyundai Technology Development Co., Ltd which merged with Halla Engineering Co., Ltd in 1980 and changed its name as Hyundai Engineering Co. Ltd in March 1982. The continues emerging of Hyundai Engineering Co., Ltd in the Design, Construction and Engineering in the overseas market strengthens is capability and popularity to compete globally after the ENR ranked them at top Design firm in the world.

Hyundai Engineering Co., Ltd (HEC) merged with Hyundai Engineering & Construction Co., Ltd (HDEC) in 1999 but separated as an independent entity in 2001.

Started in 2005, based on actual balance of 200 billion won of Hyundai Engineering, it dramatically increased to 4.1888 trillion won last year.

The merger of Hyundai Motor Group and Hyundai Engineering give a better impact of the company as expected to have stable governance, good financial stability and due to strong overseas order for Oil drilling, power plant and infrastructure projects, credit rating agency are convinced that it’s time to level up its credit rating. 

 

Apr 1: Hyundai Motor Group Completes Acquisition of Hyundai E&C Group

- Hyundai Motor Group acquires stake in Hyundai E&C for 4.96 trillion won

- The Group will support Hyundai E&C to become a world-best company

- Synergies among businesses will strengthen the Group’s competitiveness

Hyundai Motor Group officially completed a deal to acquire a controlling stake in Hyundai Engineering & Construction Group (Hyundai E&C group) on April 1, diversifying the Group’s business portfolio and demonstrating its confidence to make Hyundai E&C a world-best construction company.

“Hyundai Motor Group deeply welcomes Hyundai E&C as a family member,” said Mong Koo Chung, Hyundai Motor Group’s Chairman in his first address to Hyundai E&C employees on April 1. “Hyundai Motor Group will focus on nurturing the construction sector as one of the Group’s three core driving forces in the future, along with the automotive and steel sectors. Hyundai Motor Group will make Hyundai E&C a high-value engineering company with enforced engineering, operation and planning capabilities.”

Since chosen as the preferred bidder on Jan. 7, Hyundai Motor Group’s acquisition process has been proceeding smoothly, signing the MOU (Memorandum of Understanding) on Jan. 14 and an SPA (Share Purchase Agreement) March 8. Hyundai Motor Group submitted the final balance of 4.4641 trillion won (Total amount: 4.9601 trillion won*) on April 1, successfully completing its acquisition of a 34.9 percent controlling stake in Hyundai E&C.

* Approximately US$4.6 billion according to currency exchange rates as of April 4 in Seoul.

Hyundai Motor Group announced last October that it would invest 10 trillion won in Hyundai E&C to make it the world-best construction company with orders of 120 trillion won and sales of 55 trillion won by 2020.

Hyundai E&C will be able to take advantage of Hyundai Motor Group’s global competitiveness and its high credibility in overseas markets. Together with Hyundai Rotem, Hyundai E&C will also be able to tap high demand in overseas high-speed rail projects. Through Hyundai E&C, the Group will be able to strengthen its presence in so-called “green growth” areas by efficiently building infrastructure for electric vehicles.

“Hyundai Motor Group’s broad global network spanning across some 190 countries, as well as its global competitiveness in diverse business fields such as steel, rail and finance, will be a great asset to Hyundai E&C. Hyundai Motor Group companies will actively support Hyundai E&C to help it realize its full capabilities,” added Chairman Chung.

Source:

http://worldwide.hyundai.com/company-overview/news-view.aspx?idx=357&&nCurPage=1&strSearchColumn=&strSearchWord=&ListNum=272

 

Chairman Mong Koo Chung- The new Successor of the late Chung's Hyundai Engineering

Strengthening the Hyundai Business founded by my Father

Hyundai Motor Group has set up a new office for Chairman Mong Koo Chung at Hyundai Engineering and Construction, in an apparent move to emphasize its control over the builder, a business founded by his father the late Ju Yung Chung.

“The chairman will be using the old office used by his father, the late chairman (Ju Yung Chung), and it represents his resolve and the importance of Hyundai E&C as a member of the group, “while the chairman’s office at the Motor Group in southern Seoul will be continuously maintained.

Hyundai Motor Group, which is now promoting the construction business as one of its top three growth-engines, also unveiled a new corporate logo on Thursday.

However, industry watchers say that the move is related to the symbolic meaning Hyundai E&C holds for Hyundai conglomerates.

Chairman’s Chung’s taking of his father’s office is clearly dishevelled feathers at Hyun Jeong-eun’s phony CEO of Hyundai Group, which unsuccessfully competed for Hyundai E&C with Hyundai Motor Group. This move is the most positive way of succession of the throne in the Hyundai Conglomerate’s founded Hyundai business. Chairman’s Chung rights over succession is the most proper way since the Hyundai is founded by his father and not by the Hyun clan who want to take a full control of what the late Chung’s founded business wherein she is not part of the family.

During the process, the two conglomerates had resorted to legal action against each other on a number of charges including defamation in what many called yet another family feud as the group chairwoman is the widow of Chung Mong-hun, brother of Hyundai Motor Group chairman.

While Hyundai Group’s public relations officials declined to comment, sources inside the conglomerate said that the group was “not happy” about the developments regarding the new office.

The opening of a new office for the chairman, who went to work at Hyundai E&C building for the first time in 11 years on Friday, is not the only move that could be interpreted as Hyundai Motor Group’s tightening of its grip on the builder.

On Thursday, Hyundai Amco vice chairman Kim Chang-hee was appointed as Hyundai E&C’s CEO to serve with Kim Joong-kyum who will continue to hold the CEO’s post.

Having worked for Hyundai Motor Co. for nearly 30 years, Kim is said to be a “Hyundai Man” through and through, and he also headed the auto group’s team for Hyundai E&C acquisition.

Further clinching his grasp over the construction company, Chung on Friday vowed Friday to make an all-out effort to help develop Hyundai E&C into a leading global company.

The pledge came after the group completed its acquisition of Hyundai Engineering & Construction Co. on the same day by paying the remaining 4.46 trillion won ($4.06 billion) out of the 4.96 trillion won deal.

“Everyone at Hyundai Motor Group will give their full support to help you realize all your abilities and potential,” Chairman Chung said in a meeting with Hyundai E&C officials.

Hyundai E&C, the country’s largest builder, is considered to have formed the basis on which late Chung Ju-yung built his business empire, which gave rise to a number of smaller conglomerates including Hyundai Motor Group and Hyundai Group.

The construction firm fell under the joint management of its creditors following a debt for equity swap in 2001. Hyundai Motor Group was selected a preferred bidder in January and signed the deal for the takeover in early March.

With its acquisition of the country’s largest builder, Hyundai Motor Group, also the parent of South Korea’s top two automakers, Hyundai Motor Co. and Kia Motors Corp., now has 50 affiliates with combined assets of 126 trillion won and 184,000 employees, the group said.

“Hyundai Motor Group’s massive global network spanning nearly 190 countries throughout the world, along with the global competitiveness of our group’s other units, will all serve to reinforce Hyundai Construction,” Chung said.

 

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