Although Korean shipbuilding and shipping businesses are carrying out a large-scale restructuring, Hanjin Heavy Industries & Construction, which seeks to make a fresh start by entering the workout program with creditors, is in trouble with the name of “Hanjin.” Hanjin Heavy Industries, which is considered a luxury brand in the Philippines, is suffering with a storm of inquiries from various agencies, including the government and financial firms, as news about Hanjin Shipping’s financial crisis breaks out every day.
Hanjin Heavy Industries has carried out a two-track strategy as its small Yeongdo Shipyard in Busan focuses on special ships, like warship, and the Subic Shipyard in the Philippines focuses on merchant ships, including large container ships. Thanks to full support from the Philippine government and low labor costs, the Subic Shipyard is continuously recording surplus despite the current economic slump. The sound structure of the Subic Shipyard helped creditors give good marks on Hanjin Heavy Industries. The company has raised its corporate awareness and favorability by taking charge of basic industries, such as subway and airport, in the Philippines for more than 40 years. Younger Filipinos choose Hanjin Heavy Industries as the most favored company to work for.
However, Hanjin Heavy Industries is seeking to come up with measures as it is inundated by phone calls from agencies to check the corporate stability due to recently pouring foreign media reports about Hanjin Shipping. An official from Hanjin Heavy Industries said, “The company is besieged with calls from media in the Philippines. We told them the two companies are completely different companies but I don’t think they believe it.”
Hanjin Heavy Industries has become a separate group after spinning off from Hanjin Group in 2005. Hanjin Heavy Industries already completed the equity structure arrangement with Hanjin Group and currently has no business transaction, including shipbuilding orders.