Dove is a car carrier with a carrying capacity of 6,700 vehicles. STX Dove, each 25m wide and 11m long, can generate a maximum
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1 STX Business Group Newsletter news World Best STX with the spirit of Creativity & Challenge No Solar power facilities to be built in the STX Dove, a 6,700 units Pure Car Truck Carrier STX Pan Ocean successfully installed a photovoltaic power generation system on the STX Dove on April 19 th, a first amongst ships owned by domestic shipping companies. STX Dove is a car carrier with a carrying capacity of 6,700 vehicles built in the STX Dalian Shipbuilding Complex. The photovoltaic power generation modules installed on the STX Dove, each 25m wide and 11m long, can generate a maximum of 24KW from a total of 240 heat collection plates. The modules provide 5% of the electric power required for the operation of the ship including that for the engine control system, the air handling unit, lighting system, etc. Through the modification of the module, STX plans to increase the output up to 60KW this year and 120KW in The company expects that it can ultimately provide approximately 30% of the power necessary for the operation of the ship this way, an achievement that will reduce CO2 emissions. What made the introduction of this on-ship photovoltaic power generation system successful is the cooperation between STX s affiliates and their efforts. STX Solar developed the power generation system and STX Marine Service installed the system and provided technical consulting services. In addition, STX Pan Ocean made a lavish investment in the introduction of green energy by establishing its Fuel Optimization Team at the beginning of this year. In the past, photovoltaic power generation was utilized for the internal lighting of some cruise ships by installing a photovoltaic power generation system. However, it is the first in Korea to install the system in an ocean-going ship. STX plans to introduce the photovoltaic power generation system to other ships by carefully examining the fuel saving effect as well as several aspects of ship operation.
2 news Concluding an MOU for a Super-large Oil Export Facility with Venezuela Venezuela s national petroleum corporation. The Venezuela oil export facility construction project totaling USD 8.8 billion is considered the largest ever construction project of those implemented by Korean construction companies in Central and South America. The project consists of three packages and the entire construction processes for the export complex, including basic design, procurement, etc., will be implemented on a turn-key basis. STX Construction has advanced full-scale into Central and South America by concluding an MOU for the construction of a super-large oil exporting facility with Venezuela, a representative oil producing country in Central and South America. STX Construction will establish a joint venture with an equity ratio of 50/50 with Daewoo E&C and will enter into a contract for the FEED (Front-End Engineering and Design) in the first half of this year. STX Construction concluded an MOU for the Venezuela Surface Facilities Project for the construction of an industrial belt including an oil transportation pipeline, storage facility and export quay at Lotte Hotel in Sogong-dong on April 25 th with Rafael Ramirez, the Minister of the Ministry of Petroleum and Energy and President of PDVSA(Petroleum De Venezuela S.A), Through this consortium, STX Business Group will have an opportunity to have its global network and capability verified. With Daewoo E&C, STX will not only maximize their own strengths, they will also implement this super-large energy plant project successfully through synergistic effect. Expanding Business in the Middle East with New Projects in Libya Having successfully made inroads into the Middle East market through a large diesel power generation plant project, STX is now accelerating its advancement into the restoration market in Libya. STX Heavy Industries recently concluded an MOU for a variety of construction projects for power plants, desalination plants, steel mills, chemical plants and cement plants in the Tobruk area at the Tobruk Provincial government office, with Lee Chan-woo, President of STX Heavy Industries, Mohamed Yassin, Governor of Tobruk, and other concerned persons in attendance. STX Heavy Industries will have discussions with the Tobruk Provincial Government and the Libyan Central Government about the package deal and ways to cooperate for the promotion of industrial plant construction projects. The company will accelerate its business promotion so that the main contract for the projects may be concluded this year by establishing a detailed plan based on the cooperation plan provided by the Tobruk Provincial Government. In addition, for project promotion, Lee Chan-woo, President of STX Heavy Industries, along with the working group of the company, are contacting major concerned personnel of the Libyan Government as well as those of the oil companies, steel mills and banks in the province. Recently, they also visited major cities in Libya including Tripoli, the capital of Libya, and Benghazi, a harbor city in the eastern part of Libya, exerting efforts to expand the partnership. Creativity & Challenge
3 Receiving Consecutive Orders for Vessels STX continues its march to secure orders in the second quarter. Having proved its competitiveness in the merchant vessel market from the beginning of this year, STX is exhibiting outstanding business results in the medium-sized tanker market. STX Offshore & Shipbuilding received an order for two 50,000DWT class tankers from Alterna, a shipping company in the USA. They will be delivered in the second quarter of STX Dalian also received an order for four 50,000DWT class tankers from a shipping company in Singapore, which will be delivered beginning the third quarter of These shipbuilding contracts total USD 200 million and include two and four tankers as an option, respectively. STX, which had steadily concluded contracts since the beginning of the year, has secured orders for 12 medium sized tankers totaling USD 400 million. STX OSV is also exhibiting a full-scale march for order receipts by receiving orders for offshore specialized vessels consecutively, despite the depression in the shipbuilding market. STX OSV received an order for one anchor handling tug supply vessel from Iceman AS on April 12 th and an order for two offshore subsea construction vessels from Siem Offshore on April 13 th. The anchor handling tug supply vessel ordered by Iceman AS, which is 94m long and 24m wide, is equipped with an icebreaking function which allows multi-purpose operation in polar regions. The offshore subsea construction vessel, which is 121m long and 22m wide, will be equipped with a crane with a lifting capacity of 250 tons on its deck, which is necessary for offshore subsea construction. These specialized offshore vessels apply the ship designs, AH 12 and OSCV11, developed by STX OSV. Their hulls will be built at STX Europe s shipyard in Rumania and the remaining works will be done at its Norway shipyard. They will be delivered in STX Dalian, Advancing into the Harbor Crane Industry These RMGCs, which can handle 36 boxes of containers perhour, will be installed at the railway transportation shop at thesouth end of the new Busan Port by the end of Decemeber 2012 and delivered in 2013 after commissioning. STX Dalian penned a contract with Samick Logistics for two RMGCs (Rail Mounted Gantry Cranes) to be installed at the railway transportation shop at the new Busan Port in Korea on April 6 th. By advancing into the harbor crane business in addition to itsbusinesses in the fields of shipbuilding, heavy industries andship cranes, STX Dalian could easily establish a base for the diversification of its crane business. The company will reinforce its order receipt competitiveness by concentrating its efforts on its harbor crane business.
4 Leading the Ocean & Beyond Exporting Shipyard Know-How to Canada shipyard material logistics and procurement process improvement, arrangement of advanced equipment and devices, etc. STX Offshore & Shipbuilding will export its shipyard design and operation know-how to Canada by concluding a contract for the first stage technical assistance for the modernization of the Vancouver Shipyard on April 16 th Along with Seaspan, which is also participating in the Canadian Government s NSPS (National Shipbuilding Procurement Strategy) project, STX Offshore & Shipbuilding plans to provide technical assistance services for shipyard layout improvement, As a project for the construction of warships and non-combatant ships being promoted by the Canadian Government, NSPS is a super-large project that will build 23 warships (convoy and surface ships) and seven non-combatant ships (large icebreakers, coastal defense ships, etc.) over the next 20 ~ 30 years. STX Offshore & Shipbuilding will participate in the project through a total of three phases. In the first phase the company will improve the equipment and production process of the Vancouver shipyard in order to improve its productivity. In the second and third phases it will provide additional technical assistance services for ship design, process management as well as training of production workers. Receiving an Order for the Second Residential Building in UAE STX Construction received an order for the Rawdhat Residential Building Phase #2 project amounting to USD 20 million from the UAE on April 18 th. The Rawdhat Residential Building Phase #2 project is an 11-storey residential building with 78 households to be built in Abu Dhabi, the capital of the UAE, which was ordered by the Aabar Investment Group, a national investment company of the UAE. Having received contracts for two buildings of the Rawdhat Residential Building Phase #1 ordered by the Aabar Investment Group, STX Construction reinforced its competitiveness in the UAE by additionally securing the Phase #2 follow-up work. Realizing a No Disputes Workplace for Eight Consecutive Years attended by Chung Dong-hak, Representative Director, Soung Hyung-jun, Chairman of the Labor Union and 10 concerned persons, both parties decided to find a way to cooperate with each other in order to overcome the economic crisis by declaring the entrustment of wages for STX Engine s Yongin Factory held a signing ceremony for an agreement for the entrustment of wages for 2012 with the labor union on April 16 th. At the signing ceremony, which was The Yongin Factory, which realized being a no dispute workplace for eight consecutive years as a result of this wage entrustment, displays an image as an exemplary workplace for mutual growth by further solidifying the trust between labor and management. Dream & Future
5 news Practicing Love and Sharing to Help the Underprivileged Leading the Ocean & Beyond Group as well as approximately 1,000 donated books, were sold at the charity bazaar. All proceeds will be delivered to low income families in Jung-gu in May, the Month of Family. In addition, each affiliate of STX is showing they care by practicing various contributions to local communities and is leading the activities of a social enterprise. STX Pan Ocean delivers breads baked by its staff to children of low income families and unfortunate youths once a month. The STX Family Volunteer Group held an STX Charity Bazaar at the STX Namsan Tower on April 27 th. Goods donated by STX officers and staff, along with approximately 400 products planned by the STX Family Volunteer A spokesperson for STX said, It is meaningful that all officers and staff of STX voluntarily participated in the event to help neighbors. He added, We hope that the love of each officer and staff member will gather to provide much help to many neighborhoods. Yegreena, Launching in Full-scale STX Pan Ocean s Webpage Renewal STX Pan Ocean ( has revealed an entirely reorganized webpage so that customers can use it faster and more conveniently. STX Business Group held an opening ceremony for Yegreena at STX Offshore & Shipbuilding s Marine Center located in Changwon in South Gyeongnam Province on April 17 th. In attendance were approximately 30 persons including Choo Sung-yob, President of STX Corporate, Jang Youngyu, President of STX Resort, Chairman of the Korea Employment Agency for the Disabled, along with bakers from Yegreena, etc. Yegreena, which means Love each other, is a standard workplace as an affiliate of STX established to create jobs for the disabled under the intent, We do not hire the disabled to sell bread but sell bread to hire them. STX Pan Ocean simplified its webpage menu structure by providing its latest news as thumbnails, ensuring optimized movement around the site. The webpage contains various and differentiated content with presenting a Short Cut menu for the public, shareholders, investors and applicants for employment, respectively. In addition, when connect to STX Pan Ocean s mobile webpage (m.stxpanocean.co.kr) with a smart phone, it will automatically be connected to a webpage dedicated to mobile phones for quick and stable services. STX Resort buys all the bread produced by Yegreena and distributes them to a cafeteria and cafe in the workplace of each affiliate. If Yegreena makes profits by securing stable retailers, it will increase its employment of the disabled. Address: STX Namsan Tower, 631 Namdaemunno 5-ga, Seoul, Korea / Tel: / Fax:
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