Hanjin Heavy Industries & Construction (HHIC), a leading Korean shipbuilding company, will change its name in 32 years.
HHIC announced on the 22nd that it will change its company name to HJ Heavy Industries & Construction.
It has been 32 years since it was incorporated into Hanjin Group in 1989 and changed the name to Hanjin Heavy Industries & Construction.
HHIC’s Yeongdo Shipyard in Busan has a long history to be considered the first shipyard in the Korean shipbuilding industry.
Based on the Yeongdo Shipyard, Chosun Heavy Industries & Construction produced Korea's first iron ship in 1937. This is the predecessor of Hanjin Heavy Industries & Construction.
Chosun Heavy Industries & Construction also built Japanese warships during the Pacific War. After Korea's liberation, it was re-launched as the state-run Korea Shipbuilding Corporation in 1963 and privatized in 1968.
The Korea Shipbuilding Corporation rapidly grew by expanding business areas to plant machinery, construction, and railway vehicles as well as shipbuilding.
However, due to the global recession in the shipment and shipbuilding industries in the mid-1980s, it was incorporated into Hanjin Group in 1989 and changed its name to Hanjin Heavy Industries & Construction.
HHIC received a decision to close the corporate restructuring process in 1999, and was released from court receivership in 10 years. Since then, it rapidly grew by acquiring Korea Tacoma shipyard, Hanjin Construction, and Hanjin Engineering ＆ Construction.
It also showed a high growth rate as the shipbuilding and construction industries boomed.
In order to overcome the limitations of the expansion of Yeongdo Shipyard, which is located in the city, it also established a super-large shipyard in in Subic, the Philippines in 2007.
However, due to the global shipbuilding recession that hit again, it applied for a voluntary arrangement in 2016. Moreover, even the Subic Shipyard applied for corporate rehabilitation to local courts in 2019, falling into full-scale capital erosion.
An official from HJ Heavy Industries & Construction said, “We changed the name to HJ to maintain the tradition and association effect of Hanjin Heavy Industries. HJ will establish the status as a strong heavy industry company again, and is aiming to become the sustainable ESG company after the acquisition.”
by Global Economic Reporter Ha-soo Kim ; Translate by Gounee Yang