Hyundai Heavy Industries’ first shipbuilding client offers morale support

Hyundai Heavy Industries Co., South Korea’s largest shipbuilder currently under worst crisis from few workloads and liquidity woes, had a morale-boosting special guest to a vessel christening ceremony at its Ulsan dockyard.

George Livanos, chairman of Sun Enterprises Ltd., a container carrier in Greece, flew to attend the special occasion for two 159,000 ton crude oil carriers his company had ordered in February last year.

Hyundai Heavy industries and Livanos share a special bond that dates back to 1972. Livanos has been a friend of the Hyundai family from when he first met with the late founder Chung Ju-yung and placed the first shipbuilding order to Hyundai Heavy Industries.

In 1971, Chung made efforts to receive loans from overseas lenders to finance what will become Korea’s first shipbuilding company. He is known as a legendary figure who asked for trust with nothing more than a 500-won note featuring a drawing of Geobukseon, a battleship Admiral Yi Soon-shin had built in the 16th century to combat Japanese invasion. When lenders demanded Hyundai Heavy Industries to see pre-orders to ensure payment, Chung managed to do so by drawing the first ship order from Livanos. Back then, Sun Enterprises was one of Greece’s three-largest container carriers along with Onassis Group and Niarchos Ltd. The shipper was established in 1968 and is based in Piraeus Port, west of Athens in Greece.

Livanos has been a friend of Hyundai Heavy Industries for 45 years and has ordered a total of 15 vessels so far. Based on the special ties, Livanos has attended 8 of the 11 naming ceremonies and placed an order of the first very large crude carrier (VLCC) to Hyundai Heavy Industries.

At the naming ceremony on Monday, Livanos named the two petroleum conveyer ships “Chios” and “Christina,” each after his hometown and daughter. The vessels will be delivered in late July. This time, Livanos was also accompanied by his only son, Stavros Livanos with hope that the 36-year-old would continue to develop special relationship with the Hyundai family. The younger Livanos was greeted by Chung Ki-sun, grandson of the late founder Chung who is in charge of Hyundai Heavy Industries’ vessel and marine businesses.

Livanos, meanwhile, said that he still vividly remembers the day when the late founder Chung visited him 40 years ago and persuaded him that his company is more than capable of building a strong vessel. The chairman said that what moved him to place the first order was Chung’s confident attitude and that after several years, he kept his words by delivering a well-made ship. Livanos also said that although the shipbuilding and shipping industries are experiencing tough times, better days will come once the crisis passes by.
Source: Pulse