[Report] "The Giant Dock Is Fully Occupied"... Hanwha Ocean Okpo Shipyard Regains Vibrancy

"If we combine all the ships currently being designed or constructed at the shipyard, the total reaches about 50 vessels. With the company name change and an increase in employees, the newly renovated workplace is once again bustling with energy."

On the afternoon of the 4th, upon entering Hanwha Ocean Okpo Shipyard in Geoje, the first thing that caught the eye was the towering yellow super-large gantry crane. Measuring 530m in length, 131m in width, and 14.5m in height, it is famously known as the 'Goliath Crane.' Instead of 'DSME Daewoo Shipbuilding & Marine Engineering,' the top of the crane prominently displays the English initials 'Hanwha.' This change came after Daewoo Shipbuilding & Marine Engineering was acquired by Hanwha Group in May this year, exiting the management of the Korea Development Bank creditors, and the company name was changed to Hanwha Ocean.

The Okpo Shipyard 1 Dock, where the Goliath Crane is installed, is renowned as the world's largest dock, equivalent in size to 11 soccer fields. Around the dock, the pungent smell of welding and loud noises from all directions assault the ears. Currently, four large vessels, including liquefied natural gas (LNG) carriers and crude oil tankers, are being constructed simultaneously here. About ten tower cranes installed around the dock are busily at work.

The average time from construction to launching (the process of floating a newly built ship for the first time in the shipyard) is 10 months, and it can be completed in as little as 8 months. Due to the rapid construction process, the industry often says they 'mass-produce ships.' A Hanwha Ocean employee met on site said, "Recently, as LNG imports have increased worldwide, we are building the most carriers globally."

Okpo Shipyard, along with Hyundai Heavy Industries' Ulsan Shipyard and Samsung Heavy Industries' Geoje Shipyard, has been a representative cradle leading South Korea's 'K-shipbuilding industry.' It started in 1973 as Daehan Shipbuilding's Okpo Shipyard, and five years later, in September 1978, it was acquired by the Daewoo Group and renamed Daewoo Shipbuilding & Engineering. Its 45-year history saw another name change in 2002 to Daewoo Shipbuilding & Marine Engineering after the Daewoo Group dissolved in 2000, becoming an independent company. Having written the history of shipbuilding, Okpo Shipyard began serious discussions on sale during the shipbuilding downturn in 2010 and, after many twists and turns, was acquired by Hanwha this year, about 20 years later.

On the 4th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho visited Hanwha Ocean Okpo Shipyard in Geoje and toured a ship under construction at 1 Dock.

With a new owner, Okpo Shipyard has revived amid the supercycle (boom) of the shipbuilding industry returning after about 10 years. Hanwha Ocean's order backlog in the first half of this year was 27.0756 trillion KRW, an 11.2% increase compared to 24.96 trillion KRW in the same period last year. After Hanwha's acquisition, over 110 production personnel were newly hired and are continuously being reinforced. The small parts assembly factory around the shipyard dock was also busy producing components. Approximately 40,000 parts are used in shipbuilding, which is double the number of parts (about 20,000) used in automobile production. Ships are broadly divided into the stern, bow, and hull sections, each worked on separately before being assembled at the dock after producing parts individually and moving them to the dock for assembly.

As Okpo Shipyard revives, the Geoje regional economy is also regaining vitality. The commercial district around Hanwha Ocean's Geoje workplace is busy preparing to welcome customers. Mr. A, who runs a sashimi restaurant nearby, said, "Recently, as more customers from the shipyard have come, new restaurants are opening in the vicinity." Indeed, franchise coffee shops and newly opened Korean set meal restaurants were visible near the shipyard.

Hanwha Ocean plans to secure continuous profitability through selective high-value orders. The strategy is to focus on ships, offshore plants, and special vessels to respond swiftly to global marine industry changes. Jung In-seop, General Manager (President) of Hanwha Ocean Geoje Business Site, emphasized, "We plan to significantly increase the proportion of high-value ship orders. Hanwha Ocean aims to grow as a technology-centered company and contribute to Geoje City and, further, to Gyeongsangnam-do."

The government has also rolled up its sleeves to secure a global super-gap in the shipbuilding industry. On the day of the visit, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said, "We will strengthen the issuance of Refund Guarantee (RG) and expand support for zero-carbon and low-carbon ship development from 11.3 billion KRW this year to 15.9 billion KRW next year, and announce a plan to strengthen shipbuilding competitiveness (tentative name) within the year."