[THE INVESTOR] Hyundai Heavy Industries said on April 16 it aims to achieve 70 trillion won (US$65 billion) in sales in 2022 by focusing on high-end ships and pushing ahead with new businesses.

The 2022 sales target is a big jump from sales of 37 trillion won earned in 2017, the shipbuilder said. HHI is aiming for 37 trillion won in sales this year.  

“We are putting a bigger focus on technologies (to sell value-added ships, such as liquefied natural gas carriers) and planning to make an announcement on our new business early next month,” HHI Holdings Chairman and Chief Executive Kwon Oh-gap told a press conference.

HHI plans to establish a research and development center in Pangyo, just south of Seoul, by 2021 with an engineering workforce of up to 7,000, Kwon said.

He expects the shipbuilding industry to show some improvement in 2020 though local shipyards won’t be as busy as they were before the 2008 financial crisis.

The Ulsan shipyard sold off non-core assets and reduced its workforce through voluntary retirement programs after shipbuilders were hit hard by the financial crisis.

In extended streamlining efforts, the shipyard will continue to shed more redundant and non-profitable jobs this year due to sluggish market demand, the chairman said, without elaborating.

Hyundai Heavy Industries Holdings has affiliates, such as Hyundai Heavy Industries, Hyundai Mipo Dockyard Co., Hyundai Samho Heavy Industries and Hyundai Oilbank.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)