HJ Shipbuilding nstruction : HJSC announces KRW 7.4 trillion order backlog

- Ready to take great strides forward by winning a lot of orders in construction and shipbuilding

HJ Shipbuilding & Construction (HJSC) announced that it has achieved great success by getting a lot of orders. It is anticipated that such favorable mood would continue until the end of the year.

The multinational shipbuilder expects improvements in sales with the return of reserves as sales after labor and material costs which account for a great portion in construction costs become stable in the second half of the year. In particular, the global enterprise has secured contracts for upcoming 4 years in construction and shipbuilding, which are worth KRW 7.4 trillion.

In construction, for example, the South Korean shipbuilder signed a total of KRW 5 trillion contracts including Incheon International Airport 2nd Passenger Terminal Expansion, Gwanggyo-Homaeil Construction Project on Shinbundang Line, GTX-A Construction Project, Korea Institute of Energy Technology Campus Construction Project, 500kW New Gapyeong Converter Station Project, Gangwon Power Supply Facility Power Cable Construction, Boryeong New Combined Cycle Unit 1 Construction and Jangho Port Improvement Project.

HJSC also displayed great performances in housing redevelopment. This year, it has successfully won KRW 600 billon contracts including Samseong-dong redevelopment (Daejeon), Beomeo-dong redevelopment (Daegu), Daejam-dong Haengbok Apartment reconstruction (Pohang), Yeonsan-dong redevelopment (Busan), Guseo Area IV reconstruction (Busan), Yeokgok-dong redevelopment (Bucheon) and Segi 1-cha reconstruction (Jeju). As result, its brand's reputation is rapidly climbing with 'Haemoro'.

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In shipbuilding industry, despite inflation, the global shipbuilder has also secured KRW 2.4 trillion contracts including ten 5,500-9,000TEU eco-friendly container ships and diverse special-purpose vessels including naval vessels. Especially, the order backlog dramatically increased from KRW 1.4 trillion at the end of 2021 to KRW 2.2 trillion last year. Entering this year, it has slightly increased.

In special-purpose vessels, HJSC signed the contracts for the improvement of landing ship fast (LSF), patrol-boat killer medium rocket (PKMR) and Dokdo-class ship, Combined Joint Logistics Over the Shore (CJLOTS) and the 3000-ton patrol boat for Korea Coast Guard. In August 2021, the largest shareholder changed. Since then, the Company concentrated on management normalization and enhanced its competitiveness.

The global shipbuilder is committed to making its best efforts in winning more contracts including ROK Navy's patrol boats, various special-purpose vessels, eco-friendly container ships and gas carriers. Recently, the Company successfully developed an 8500TEU eco-friendly carbon capture & storage (CCS) container ship, preparing for a zero-carbon era.

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HJSC has also shown great improvements in financial structure by selling its assets. For example, it secured about KRW 200 billion cash by selling its valuable asset 'Incheon North Port Site'. In December last year, the Company sold a part of its land in Wonchang-dong at KRW 77 billion.

DONG SEOUL Terminal building and site which were sold to Shinsegae DONGSEOUL PFV at KRW 402.5 billion are also under development. HJSC targets to launch construction in 2025 and complete by 2028 by getting construction permits by the end of next year after closing pre-negotiations including the public-contributed construction together with the City of Seoul.

An official from HJSC said, "All our employees have worked hard so far. As a result, we have been able to enhance our corporate values." He continued, "It is anticipated that our sales performances and cash flow would look much better next year with the return of reserves."