New Hyundai HI CEO O.G Kwon talks 2015 goals ahead of INTERMAT show

O.G Kwon, the new chief executive of 429 Hyundai Heavy Industries (Hyundai HI) South Korea, has talked about his aspirations for the globally renowned construction equipment manufacturer in 2015.

Speaking ahead of the 432 INTERMAT 2015 exhibition being held in Paris, France, this April, Kwon said Hyundai HI faced a tough year in 2014 and he is anticipating an equally challenging 2015. This, he said, is largely down to the persisting global economic stagnation, plummeting oil prices and intensifying competition with neighbouring countries such as China (low labour costs) and Japan (weak yen). However, Kwon is confident that the South Korean-headquartered manufacturer can rise above external difficulties by being one step ahead of its competitors in its design and development of innovative products.

Hyundai HI has set its order target at €20.35 billion (US$23 billion) in 2015 – ambitious but achievable, according to Kwon. “In 2015, we must turn in more profit to lay the foundation for renewed growth,” he said. “With this in mind, we will make sure that 2015 marks the beginning of our big step forward on the basis of revived competitiveness.”

Kwon has set some objectives for Hyundai HI to work towards. “To survive and thrive amid fierce competition, it is essential to remain price competitive in our sector. HHI has initiated competence-enhancing efforts for each of its business divisions by launching a special ‘Task Force’. This year, more concrete measures need to be outlined and put into practice. The task of enhancing price competitiveness is a top priority for HHI this year.”

Hyundai HI is also said to be striving towards a workplace that is safer and systemised. Of this, Kwon said: “Production facilities and workers are the most valued assets of HHI, and operation thereof is the barometer of our competitiveness. Cutting out waste and material excesses, combined with systematic operation, will help enhance our product competitiveness.

“Last but not least, we need to modernise the corporate culture. Unchanging companies with a bureaucratic corporate culture can discourage talented people from joining the company and may encourage valued employees to leave the company. Now, HHI should seek increased dynamism and energy by driving changes in leaders to realise a sustainable competitive advantage.”

Focusing on Hyundai HI Europe, Kwon added: “HHIE has time and again triumphed over adversity of one kind or another with unyielding dedication and relentless enthusiasm for the last four decades. If we remain firmly committed to our goals, great results will follow automatically.”