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HMM-growth strategy
HMM to invest US$11.4 bln to boost competitiveness
SEOUL, July 14 (Yonhap) -- South Korea's leading container shipper HMM Co. said Thursday that it will invest 15 trillion won (US$11.4 billion) over the next five years to increase its capacity and secure diverse strategic assets as part of its efforts to become a top-tier global shipping company and achieve sustainable growth.
Of the total, the company will spend 10 trillion won on purchasing ships and acquiring other assets, with the remainder to be invested in business diversification projects.
The plan calls for expanding its shipping capacity to 1.2 million twenty-foot equivalent units (TEUs) in 2026 from the current 820,000 TEUs in a bid to strengthening its shipping capabilities.
The number of bulk carriers will be increased to 55 in 2026, up 90 percent from the present 29 vessels.
"As a global shipping company, HMM will put its top priority on the continuation of its growth in the future, which is the focus of this mid- and long-term strategy," company CEO Kim Kyung-bae said.
HMM will also seek to secure low-carbon vessels in a bid to cope with tougher environmental restrictions across the world and ramp up efforts to boost its digital competitive edge.
In addition, the shipping line will set up a task force on environment, social and governance (ESG) management to achieve sustainable growth.
HMM's massive investment plan came after the shipping company pulled off a stellar performance in the first quarter of this year on high freight rates amid global supply chain disruptions sparked by the coronavirus pandemic and the war in Ukraine.
Net profit stood at 3.13 trillion won in the January-March period, nearly 20 times more than a year earlier, with sales more than doubling to 4.92 trillion won.
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