HMM targets more green ships with new multi-billion-dollar investment

South Korean shipping company HMM has unveiled its future growth strategy involving a KRW 15 trillion (about $11.3 billion) investment plan.

HMM
Illustration/HMM Nuri; Image credit: HMM

With its new mid-to-long-term strategy, HMM aims to diversify its business portfolio for future growth and improve its position as a shipping and logistics company.

Specifically, the strategy includes expanding the fleet capacity of eco-friendly containerships to 1.2 million TEU from the current 820,000 TEU by 2026. The extension of bulk business is also scheduled by increasing its fleet to 55 ships from the current 29 ships on the same timetable.

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In particular, the company will invest more than KRW 15 trillion in a range of initiatives, including securing core assets such as ships, terminals, and logistics facilities throughout the upcoming five years from 2022 to 2026.

Of the KRW 15 trillion, KRW 10 trillion will be allocated to secure core assets such as ships, terminals, and logistics facilities. KRW 5 trillion is scheduled to be assigned in future strategic projects to diversify HMM’s business.

The South Korean company will also invest KRW 150 billion in digitization by improving online-based ‘e-platform’ and accelerating ERP upgrades.

HMM explained that the future strategy has been established to respond to growing uncertainty arising from ever-changing business circumstances and lay a solid foundation for sustainable growth.

The carrier said it will continue to enhance environmentally-friendly services for carbon neutrality in 2050 and explore the likelihood of ordering ships using alternative fuels in the future.

HMM also intends to make enterprise-wide R&D efforts in the use of carbon-neutral fuels in cooperation with industrial players.

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“Our strategy is to ensure perpetual growth of HMM under the new vision – a global leading company generating sustainable value for the world,” Kim, Kyung Bae, HMM President & CEO, said.

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