Development of the World s First 22,000 TEU Class Container Ship
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1 Development of the World s First 22,000 TEU Class Container Ship STX Shipbuilding succeeded in the development of a 22,000 TEU class container ship for the first time in the world, exceeding the 20,000 TEU that has been recognized up to this point as the limit in the aspects of technology and economic efficiency. STX Shipbuilding developed both oneand two-propeller types of container ships, which are 460m in length, 60m in width, and 30m in height, and equipped with a deck area as wide as the area of 4 football fields. Particularly, since with only one propeller it can sail at 24~26 knots, which is the normal speed for medium and large container ships, it is recognized as a ship with high economic efficiency. In addition, this container ship can save more than 40% on the unit transportation cost compared with that of existing super-large container ships. STX Shipbuilding, which received orders for 9 container ships of 13,000TEU from European shipping companies, proved again its advanced technological power and simultaneously provided an important base from which it can leap toward becoming the world s leading shipbuilding company. HOA for Establishment of Shipbuilding Yard in Azerbaijan STX Business Group entered into Heads of Agreement (HOA) On May 22nd with the State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company for the establishment of a shipbuilding yard in the Garadagh region located in the southern part of Baku in the Caspian coast to be completed by 2011 with a total investment of USD 430 million(socar 65%, STX 25%, and AIC 10%). STX will be in charge of operation of the shipbuilding yard. The Baku region in which the shipbuilding yard will be built is the place from which the BTC Oil Transportation Line passing through Azerbaijan, the Republic of Georgia, and Turkey starts. It is expected that the demand on the ships here will increase significantly as crude oil produced in Azerbaijan, Iran, etc. is collected to this region.
2 STX Business Group s chairman Duk-soo Kang received the Personality of the Year Award at the ceremony of Seatrade Asia Awards 2008 established this year for the first time by Seatrade, a magazine of authority in Shipbuilding and Shipping. Chairman Kang, Christopher Hayman, Chairman of Seatrade, and those who engaged in shipbuilding and shipping around the world attended this awards ceremony held at Shangri-la Hotel in Singapore on May 13th. The Seatrade Asia Awards is presented by Seatrade to individuals or companies that made great achievement in the fields of shipping and shipbuilding. Seatrade Asia Awards was newly established this year, reflecting the reality that the global hub for the shipbuilding and shipping industry is moving to Asia. With his remarkable management performance, Chairman Duk-soo Kang had the honor of being selected as the first ever awardee. The credit rating of the major affiliates of STX Business Group was increased in the grade assessment performed by the Korea Investors Service, Inc. on May 14th. The Korea Investors Service, Inc. newly assessed the credit rating of STX Corporation to be A- (Stable), STX Pan Ocean to be A (Stable), STX Engine to be A- (Stable), and STX Heavy Industries and STX Enpaco to be BBB+ (Stable). In addition, it increased the credit rating of STX Shipbuilding from BBB+ (Stable) to A- (Stable). This is the result of the reinforcement of the market position and business stability. Meanwhile, the listed affiliates of STX announced their records in the first quarter of 2008 through the May business reports. STX Corporation received the 2008 Grand Prize for Transparent Accounting, the award of top authority in the field of accounting in Korea, from the Korean Accounting Association(KAA) on May 15th. KAA announced that STX Corporation had been chosen for the award because STX had made continuous efforts to enhance its management transparency by appointing several outside directors and operating subcommittee. In addition, KAA gave STX Corporation a high evaluation for the operation of a task force to promote the introduction of International Financial Reporting Standards (IFRS) and operation of a management diagnosis team under direct control of an auditor. 02
3 STX Shipbuilding completed installation of a gantry crane with the capacity of 1,500 tons in the Jinhae Shipbuilding Yard on May 11th by completing its girder installation. This gantry crane, which is also called Goliath Crane, was introduced to handle the increasing quantity of ship production efficiently. The gantry crane introduced this time, which is 98m in height, 128m in width and weighs 4,150 tons, will be operated in full scale from the beginning of June after commissioning. As it is possible to handle larger blocks with this gantry crane, it is expected that the dock productivity of STX Shipbuilding will be even further increased. STX Enpaco succeeded in the localization of the MT881 engine crank case for K9 self propelled artillery in cooperation with Daeshin Metal Co., Ltd. For this, it received the Foundation Chairman s Award of the third Beautiful Companion Award on May 29th. The Beautiful Companion Award, which was established in order to promote the winwin cooperation between large and small/medium enterprises, is awarded to the personnel in charge. This time, the award was given to Young-ik Kim, Assistant Manager of the Special Engine Design Department of STX Engine and Yong-hyun Kim, Team Leader of the Technology Research Center of Daeshin Metal Co., Ltd. STX Business Group is opening Little Libraries one after another in Changwon, Masan, and Jinhae, actively providing cultural facilities that can be used by local residents. STX Engine opened the Little Sogye Library on May 16th, and STX Heavy Industries, STX Shipbuilding held opening ceremonies for Little Library at Gyeongnam University and Dongjin Girls Middle School in Jinhae on May 21st. Thank You, Little Library is a program that promotes the establishment of libraries in the culturally alienated regions lacking in various cultural facilities through a regional culture activation campaign jointly operated by the National Library of Korea and MBC. Jong-chul Lee, Vice Chairman of STX Business Group received the Silver Tower Order of Industrial Service on the 13th Ocean Day on May 31st. While in office for 28 years in STX Pan Ocean, Vice Chairman Lee made great contribution to the development of the Korean oceangoing shipping business including settlement of a transparent management system and improvement of trade balance through sales in foreign currency. Su-jou Kim, Representative Director of STX Norway, was appointed as the new Director of Aker Yards in the regular general shareholders meeting held in Oslo, Norway on May 21st. At this shareholders meeting, Mimi Berdal (Norway) and Gri(France) were appointed as new Directors in addition to Su-jou Kim. Three existing directors, including Svein Sivertsen (Norway), were reappointed. 03
4 Chairman Duk-soo Kang met with John Major, former British Prime Minister, and discussed mutual points of interest on May 28th. STX Business Group donated 4.1 million yuan for restoration of the damage of the Sichuan earthquake in China on May 22nd. STX Energy gave a presentation on the co-generation plant site in Banwoel with Byung-wook Lee, Vice Minister of the Ministry of Environment (middle in the front line) in attendance on April 25th. STX Engine held a ceremony for Sisterhood Relationship Establishment with the Military Academy and Fund Donation in the Military Academy and donated 500 million won on May 2nd. STX Construction entered into a mecenat agreement with Theater Godo, which is based on Jinhae, for the development of regional culture and arts on April 25th. STX Pan Ocean invited Jung-eum Jang (17), a second grade student at Jinhae Girls High School, to the naming ceremony for STX ACE 11, which was held in Jinhae Shipbuilding Yard on May 16th. 04
5 STX Business Group held a video interview for global intelligence recruitment in the office of Cisco Systems Korea in Seoul on May 8th. Chairman Duk-soo Kang joined and conducted this interview with key management personnel. STX held recruitment presentation meetings in LA, New York, and Beijing at the beginning of May. Through this global recruitment, STX plans to employ college graduates as well as those with master s and doctor s degrees, who will be assigned to the R&D and new business development in shipbuilding and machinery, global accounting and foreign currency management, and global judicial affairs. STX Pan Ocean gave a presentation for investment to approximately 100 domestic and overseas institutional investors at the Investor s Conference held by Samsung Securities Co., Ltd. on May 8th. At this Investor s Conference Jong-chul Lee, Vice Chairman of STX Business Group gave a presentation on the good business results of STX Pan Ocean in the first quarter, and positively recommended institutional investors to make investment in STX Pan Ocean stressing that favorable market condition for the bulk carriers was expected to continue. Approximately 500 domestic and overseas institutional investors as well as 84 domestic enterprises attended this conference. STX Enpaco held the opening ceremony of Crested Ibis School in the Upo Swamp, the largest natural swampy land in Korea, with approximately 80 people including Woo-ik Song, President of STX Enpaco, Tae-ho Kim, Governor of Gyeongnam Province in attendance, and donated 50 million won on May 7th. As the Ramsar Meeting is to be held in Changwon this year, STX Enpaco will actively join the movement of restoring endangered crested ibises (Natural Monument No. 198) focusing on Upo Swamp. Meanwhile, STX Engine donated 2 sets of PDPs to the Ecology Hall of Upo Swamp that provides a variety of information on the ecological environment on May 27th. STX Business Group held various events where families could join together in May, the Month of Family. STX Pan Ocean held an event to deliver letters and flowers to family members. It also held an event for a stock farm experience in Yeoju for its staff members and their children on May 17th. Family Volunteer Service Group of STX Shipbuilding visited the elderly living alone in Jinhae, pinning carnations on their chests on May 8th. STX Heavy Industries held the Family Photo Contest for the staff members in Seoul. The affiliates of STX Business Group in Gyeongnam area jointly held the Gyeongnam Filial Piety Party with STX at Changwon Gymnasium on May 17th. 05
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