HUD SETS A NEW COURSE
HUTCHISON associate Hongkong United Dockyards is changing the balance of its activities to counteract the effects of the worldwide recession in the shipping industry.
"Owing to the much lower volume of ship repair business and the virtual disappearance of major conversions which have long been an HUD speciality, we are developing other types of work," explains Peter Barnard, HUD's managing director.
According to Mr Barnard, the company is now using its facilities and the varied skills of its workforce to expand in other directions. Although most of its turnover still comes from ship repair business, 25% of all work is now land-based general engineering and that is expected to increase to one third in 1986.
The range of HUD's general services is wide and it is fortunate that the expertise acquired through dockyard activities is applicable to other work. HUD can provide project management, skilled labour and workshop facilities for electrical and mechanical engineering work of all kinds; plant manufacture and repair; steel fabrication and erection; electrical, air conditioning and refrigeration installation and repair; rigging; pipe laying; fire protection and thermal insulation; and plant maintenance.
Diversification means the future looks somewhat brighter for HUD than it did a year ago, but this does not mean any slackening of effort to secure business in its core activity. “Our trade skills are varied but our extensive facilities are essentially geared to ship repair.
"The recent weakness of the Hong Kong dollar against the yen and the Singapore dollar has made us more competitive, but location is the major factor affecting a ship repair company, as ships are repaired where they are empty.
"With approximately 13,000 ships a year entering Hong Kong's harbour, I believe there will always be a place for an efficient ship repair service here, but we have to ensure that our facilities and workforce are in proportion to the regular business that can be obtained. Combined with increased land-based general engineering work and container facilities servicing ships at the buoys, I am confident we have a viable future, although the operating conditions are currently very difficult," concludes Mr Barnard.
PETER BARNARD,
MANAGING DIRECTOR,
HONGKONG UNITED
DOCKYARDS.
"I believe there will
always be a place for
an efficient ship repair
service here."
18
HUTCHISON WHAMPOA LIMITED