Research as the Building Block
An absence of complacency over its position as the global market leader in newbuild construction is demonstrated by Hyundai Heavy Industries' increasing plough-back of earnings into research and technological development. The raised level of annual expenditure on R&D, coupled with the group's strengthening of its network of research institutes, express a belief in the fundamental link between applied research, innovation.
competitive position and market reach.
HHI's investment in R&D activities is set to rise to about $ 102.4-billion in 2003, equating to 1.4-percent of projected sales revenues, up from $85.7-billion, or 1.2-percent of sales, in 2002.
The scale of the endeavor, which relates not only to the group's shipbuilding activities, but also to its role as a producer of marine engines, offshore and industrial plant, electrical systems and construction equipment, is implicit in its maintenance of four in-house research centers, including the Hyundai Maritime Research Institute.
In a shipbuilding and engineering context, expansion of the research budget is driven by market requirements, by a desire to increase technological and product self-reliance and competitiveness, and by a bid for increased business in the higher value-added category. The rise of China as an industrial powerhouse with a low labor-cost base is one of the spurs to technological advance.
The disposition towards a long-term strategy was earlier underscored by the $35-billion, 10-year R&D program, which resulted in the home-grown, Himsen medium-speed diesel engine class. At the time of this writing, the Himsen series had attracted orders for over 200 engines in shipboard and landside generator applications, and the first unit for marine propulsion duties is set to be installed in a patrol vessel newbuild.
Over the 2003 first-half, HHI's shipbuilding division secured contracts for 64 vessels worth $3.2-billion, exceeding the target for the whole year. By the end of July, the orderbook stood at an astonishing level of 172 newbuilds, with a combined value of about $9-billion.
Other stories from November 2003 issue
- EU Single-Hull Phase-Out Elicits I MO Scorn page: 10
- Costa Victoria in for a Facelift page: 11
- Sustainable Growth for Liner Shipping page: 11
- World's Biggest LNG Carrier Due in 2005 page: 12
- Shipbreaking in the Spotlight at ILO page: 14
- Signet Martime Inks Garrett Contract page: 16
- IZAR Enters Fast Ship Project page: 17
- TEN Signs Time Charter for Aframax Olympia page: 17
- Cruise Port Expenditure to Reach $300M page: 18
- At Sea with U.S. Maritime Security page: 20
- NY Navigation Channels: The Really Big Dig page: 25
- Kvichak Delivers for NY page: 28
- Vosta LMG signs U.S. contract for 18" Cutter Suction Dredge design page: 28
- Senesco Marine Christens New Drydock page: 29
- Workboat Annual 2003 • Great Boats of 2003 page: 30
- Natter Passes Command of Atlantic Fleet page: 41
- Introducing Lean Shipbuilding to U.S. Yards page: 42
- IBM PLM Offers New Shipbuilding Solutions page: 46
- Cosco Dalian Leads China Ship Repair Business page: 50
- China: Growing Influence in All Matters Maritime page: 52
- L'Orange at Marintec China 2003 page: 56
- Shiport China 2004: Set in Tune with the Shipbuilding Industry page: 57
- New Aluminum Marine Alloy Specification Developed page: 58
- InspecTech Launches Line of "Smart" Windows page: 62
- New CEO at Kvaerner Philadelphia page: 62
- Asheim Takes Helm of Hoegh Fleet page: 62
- New Potency in Electronic Control page: 68
- Research as the Building Block page: 70
- Knowledge Interchange page: 71
- Surface-Protection Symposium Set for Liibeck page: 78
- Xybernaut Gets Patent for Detecting Corrosion on Maritime Vessels page: 79
- LCS Hull Concept Tests Move Ahead page: 80
- Hypertherm Enters Laser Cutting Market page: 81
- E-Ship: The Paperless Trail page: 82
- Cradle Tweendecks Patent for Langh Ship page: 86
- Optimizing Feed Rates For Crosshead Diesels page: 88
- Benjamin Vickers: 175 Years & Counting page: 89
- Life Boats by Ernst Hatecke Make the Plunge page: 90
- Clean Seal Celebrates 25 Years page: 91
- Netherlands Vessel First With New Engine page: 92
- ONR To Evaluate SeaCoaster page: 92
- KMY Helps Breaks the Ice in Russia page: 97
- Astander Completes CSO Deep Pioneer Upgrade page: 97
- Rickmers Singapore Christened page: 97
- Transas Releases New Version of Engine Room Simulator page: 98
- Merseyside gets first UK escort tug simulator page: 98