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Hyundai Heavy Industries Aims to Localize 54% of Offshore Plant Equipment, Material in 4 Years
Equipment Localization
Hyundai Heavy Industries Aims to Localize 54% of Offshore Plant Equipment, Material in 4 Years
  • By matthew
  • January 23, 2015, 07:42
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A Hyundai Heavy Industries marine power plant is inspected by employees.
A Hyundai Heavy Industries marine power plant is inspected by employees.

 

Hyundai Heavy Industries has come up with a strategy to localize half of its equipment and materials in offshore plants by 2018. The localization plan has four stages, and 151 items will be developed.

Hyundai Heavy Industries announced on Jan. 22 that it has completed the localization development of the products in the first stage. Also, it has established the follow-up plan for the localization of equipment and materials in offshore plants, and has been carrying forward with it in earnest. Currently, the company is importing the equipment and materials of US$1.8 billion annually in the offshore plant sector.

The localization plan will develop 151 items for offshore plants with small and medium-sized domestic companies, including drillships, floating production, storage and offloading (FPSO), and offshore platforms. In total, 54 percent of the offshore plant equipment and materials in the offshore plants will be taken care of by third parties when the project is completed.

In the first stage, the company has completed the development of 74 items including air conditioning systems essential in marine facilities and heat exchangers. Also, the company is currently developing 27 items in the second stage by the end of 2015. Second-stage products include underwater cables.

There are 19 items planned in the third stage, which should be complete by 2017, as foreign businesses provide engineering and technology and domestic businesses package that up. For the fourth stage, by 2018, the company will either take over foreign companies possessing technology to produce a total of 16 items, or localize it with its own technology.

Separately, the company is also planning to localize 15 items of drilling equipment that are put into drill ships and rig ships.