HD HHI's shipyard in Ulsan buzzes with the sounds of recovery

Industry

Published: 07 Apr. 2023, 15:23 Updated: 07 Apr. 2023, 18:32

HD HHI's shipyard in Ulsan buzzes with the sounds of recovery

A Goliath crane, approximately the height of a 36-story apartment building, at HD Hyundai Heavy Industries shipyard in Ulsan [HD HYUNDAI]

ULSAN — Goliath cranes the height of 36-story buildings were seen in action Tuesday at the HD Hyundai Heavy Industries (HHI) Ulsan shipyard, where massive vessels were being constructed and transported around an area three times the size of Seoul's Yeouido by these enormous pieces of equipment.

The scene at HD HHI, the world's largest shipbuilding company, provides some evidence of the boom in the industry following a slump, with the company at the forefront of Korea's shipbuilding resurgence.

For the first time since 2015, the Ulsan shipyard was opened to reporters, providing a glimpse into the shipbuilding industry's current supercycle.

The Ulsan shipyard's 10 docks were filled building a total of 47 ships.

Of them, reporters were taken to a gigantic LNG carrier, which measures 299 meters (980 feet) in length, 35.5 meters in height and 46.4 meters in width. The LNG carrier is expected to be delivered to the customer — details undisclosed — in the second half, having been ordered in the second half of 2020.

HD HHI remains confident in the face of intense competition from Chinese shipbuilders. According to the company, it has prioritized high-value vessels like LNG carriers for new orders over low-cost bulk carriers, which is a different approach from its Chinese counterparts.

The LNG carrier's steering room at Hyundai Heavy Industries Shipyard in Ulsan on Tuesday [HD HYUNDAI]

"We are continuing to develop technology in line with international regulations on environmental pollution," said Lee Man-soo, a senior manager for project management at HD HHI. "We believe it would be challenging for China to catch up with our technology."

The LNG vessel's cargo containment system, considered the jewel of LNG ships, is also recognized as technically superior.

One of the key factors in building an LNG carrier is to maintain a temperature below minus 163 degrees Celsius (minus 261 degrees Fahrenheit), which reduces the volume by 300-fold, making it more easy to store and deliver. The cargo containment in HD HHI's LNG vessels are built with double thick walls to ensure that the temperature is maintained.

A shortage of skilled workers has posed a challenge for the industry as it strives to maintain its competitiveness in the global market.

As the Korean shipbuilding went through a long recession, many skilled young people turned their backs on the industry as they deemed it in declining, while foreign workers were unable to come due to the Covid-19 pandemic.

The 2022 Shipbuilding and Marine Industry Human Resource Status Report, published by the Shipbuilding & Offshore Industrial Skills Council in December last year, forecast a shortage of about 10,000 workers in the entire domestic shipbuilding industry this year.

After a decade-long severe recession, domestic shipyards like HD HHI are finally seeing people slowly returning to Korea's southeastern coast to join the workforce in line with a surge in new orders it is receiving.

Amidst the fully bloomed cherry blossoms in Ulsan on Tuesday, HD HHI's Technical Education Institute, located ten minutes away by car from the shipyard, buzzed with the energy and passion of amateur trainees keen to learn the craft of shipbuilding — including foreign nationals.

A Hyundai Heavy Industries' Technician conducts specialized welding training at Technical Education Institute in Ulsan on Tuesday. [SEO JI-EUN]

Forty technical trainees, named HHI Technicians, who had received training on smart ship technology, were taking a welding qualification test on this day. After an average two-and-a-half-month training period, these technicians can either be recruited at HD HHI or work in another company.

Bright blue sparks jumped around and the buzzing sounds of welding could be heard as the technicians conducted training. When translation was needed, interpreters provided immediate communication support.

"I've been here for one year," said Panachai from Thailand, who was taking a brief break on a couch.

Panachai came to Korea under the E-7 special occupation visa.

"I also worked as a welder in Thailand," he said. "I'm enjoying work here."

Since the opening of its Technical Education Institute in 1972, HD HHI recruited average of 1,500 trainees every year until 2015.

After a suspension of trainee recruitment in 2017 and 2018, the institute received trainees again from 2019, but the number was barely around 200.

So far this year, HD HHI has brought in 242 people for training.

In particular, the company says the number of foreigners is increasing.

"Welders continue to join from countries such as Thailand and Indonesia," said Shin Young-kyun, principal of Technical Education Institute. "Currently, there are some 3,000 foreign workers employed at HD HHI. That's why we are putting lots of efforts into programs for foreigners."

Hyundai Heavy Industries‘ Technicians conduct specialized welding training at Technical Education Institute in Ulsan on Tuesday. [SEO JI-EUN]

HD HHI has collaborated with Hankuk University of Foreign Studies (HUFS) since last October by deploying around ten HUFS students majoring in critical foreign languages like Thai, Vietnamese and Uzbek as translators at the scene. It aims to facilitate communication between foreign workers and local staff and to help them adapt to the Korean work environment, the company said.

"As safety is important, we have produced safety-related videos in different languages with the help of the students from HUFS," Shin added.

HD HHI has set a recruitment target of 1,010 people for the year.

To achieve this goal, the company is making desperate efforts to attract shipbuilding talent from both domestic and international sources.

In order to incentivize potential recruits, HD HHI offers a monthly training allowance of around 1 million won ($758). In addition, the company provides meals and dormitory accommodation for those who do not live in Ulsan, where the training takes place, and covers all expenses during the training period.

"We are educating with the determination to cultivate workers who will lead the domestic shipbuilding industry, not just those who will work at HD HHI," Shin said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]