Hyundai Engineering's President & CEO's Dong Wook Kim Autumn Speech of Morning Assembly (October)

Now autumn is already in the air. Sending a capricious season, it seems there will be more good things to happen this fall. We’ve just had the awards ceremony for contributors of contracts and excellent sites.

I express my gratitude;  From Honam Petrochemical P2 Project, and HCP Project obtained from the narrow domestic market, to Revamping Plant in Malaysia, Phosphatic Plant in Tunisia, and Gautami Power Plant in India, and to site manager and employees who have successfully completed overseas EPC projects.

I truly congratulate you and appreciated it.

It is needless to say, but it reminds me of saying, “Talented people are assets” especially in engineering field. The invaluable outcome has resulted from not only the directly related staff and employees, but the entire staff and employees who passionately worked together night and day to attain our goal.

I’d like to state the estimated business results for the 3rd quarter of 2010.

The sum of obtained orders is $ 1,990,000,000 (Billon) US Dollar which is 92% achievement compared to the plan, and the sales is $760 million US Dollar which is 88%, and therefore order reception and sales is somewhat behind the plan. Still, the operating profit is $110 million US Dollar, which is 105% achievement of the plan.

Our beloved employees, now it’s the 4th quarter of 2010. What is your resolution? We have to put effort on business goal achievement for this year, as well as prepare ourselves for the oncoming 2011.

Once the Korean Won keeps rising while we are aggressively competing in Middle East with European corporations such as those of Italy and Spain, the probability of order taking will get lower. Hyundai Engineering is confident globally because it is in its instinct of being technology advance, and global competitive but we anticipate the stiff competition in the Design, Engineering and Construction industry.

The intense competition is expected, since the narrower domestic market leads a number of Korean companies to enter the overseas market more rapidly.

Even the profitability doesn’t seem to get better next year. Still, the risks in market always exist, and we have been developed while seeking chances and challenging ourselves within risks. By enhancing competitiveness to overcome the challenge before blaming the adverse economic situation, there’s nothing we have to be afraid of.

There are distinctive characters among the Top ranked global corporations in ENR survey; pursuing EP&CM and high overseas sales proportion. In order to compete with them in the same market and take the dominant position, it is necessary to build a firm foundation as a global level.  In the following order, there will be a presentation regarding Indian state and culture by Mr. Ramesh from Process Plant division.

The homeland introduction of a foreign employee working for Hyundai Engineering (HEC) would be effective with its practical information and as a method of communication.  Employees shall globalize their business process and attitudes and upgrade mind in order to make a competitive organization with global competency.

Our beloved employees, now we should progress toward the vision we’ve built and challenge ourselves with constant passion.  The business goal for 2011 is to advance the Vision 2015 by 1 year, building aggressive goals. Achieving not only quantitative but qualitative goals, our company monitors the vision practice state by each department/team every six month, and gives feedback for practicing willpower.

Let’s attain the Vision 2015 in advance by steady and consistent practice.

Our beloved employees, our Company, The Hyundai Engineering has signed up for the UN Global Compact, an international agreement for the first time as a domestic engineering company, and expects to publish Sustainability Management Report soon. Through stabilizing the transparency and ethical foundation in general, and through win-win management with subcontractors and sharing management, we shall grow as a beloved and respected corporation.

I suggest to all the employees to adapt  the new international paradigm. Now it’s time to wrap up the last 3 months and plan for the next year. Next year will be busy, with the order backlog for 3 years, worth of $4,220 million.

The manpower shortage is forecasted to deepen.

To resolve the shortage problem, we should outsource the low value-added sector and improve the inefficient sector into productivity-oriented process through change and innovation.

I appreciate all the employees working overtime and during weekends to take all the job responsibilities, and I’d like to stress that we should make an enjoyable working atmosphere as much again.

Under the cold weather and busy works, please put your health care above all.

May happiness fill you and your family every day.

Thank you.