Thursday, January 18, 2024

 

Hanwha Ocean Resumes Work at Shipyard After Fatal Accident

Hanwha Ocean shipyard
Work was stopped after an explosion in the workshop devoted to rudders (Hanwha Ocean file photo)

PUBLISHED JAN 17, 2024 7:13 PM BY THE MARITIME EXECUTIVE

 

 

Hanwha Ocean reported that it has resumed production at its shipyard in South Korea after a fatal accident last Friday that prompted an investigation and efforts to develop preventative measures for the future. In a stock exchange filing, South Korea’s third largest shipbuilder reported work was resuming in most parts of the yard except for the area covered by a government order received on January 16.

“The company decided to resume work after receiving an official document from the Ministry of Employment and Labor,” Hanwha Ocean said in the filing. Work they reported would be resuming at the Okpo Shipyard, including manufacturing plants 1 and 2 as well as the workshops.

The company, however, reports it received an official order from the Ministry to stop work at other parts of the manufacturing plant. The impact from this order they said would be minimal to sales.

According to media reports, a subcontractor was grinding in the workshop devoted to rudder assemblies on January 12 when the explosion occurred. The 28-year-old man was reportedly hit by debris and blasted across the workshop. He had been working in the yard since March and succumbed to his injuries at the hospital later in the day.  It was the first fatal accident at the shipyard since Hanwha Ocean completed the acquisition of Daewoo Shipbuilding and Marine Engineering (DSME) in 2023.

The investigation is looking at the possibility of a gas leak in the workshop. Hanwha Ocean has said the workshop would remain closed until the cause of the accident was determined and steps taken to prevent a similar incident in the future.

Union leaders have been calling for a full investigation. Under South Korean law, the executives of the company can be held accountable for the accident. The Korean Times reports that Hanwha Ocean’s unionized workers are calling for the authorities to arrest the executive who is managing the company. Since the beginning of 2022, they contend there have been five fatal accidents at DSME and now Hanwha Ocean. They want a more thorough investigation of the labor practices of the company arguing that safety precautions can not be overlooked for the sake of production. 

Hanwha Ocean said that it had immediately notified the authorities after the accident occurred and that it is cooperating with them while the investigation is ongoing.


Fatal Accident Causes Hanwha Ocean to Suspend Production

Hanwha Ocean shipbuilding
Hanwha Ocean is building LNG carriers and Hapag-Lloyd's new large containerships (Hanwha Ocean file photo)

PUBLISHED JAN 15, 2024 5:17 PM BY THE MARITIME EXECUTIVE

 

 

South Korea’s third-largest shipbuilder, Hanwha Ocean, reports work was suspended at its shipyard facility in Okpo after a fatal accident. An investigation is underway with the yard expected to remain closed until government officials determine the cause and prescribe preventative steps to be taken at the facility.

According to the reports, there was an explosion in one of the fabrication shops at the shipyard on Friday, January 12.  At approximately 3:20 p.m. there was an explosion in the facility working on manufacturing rudder. A subcontractor in the facility, a 28-year old man, whose name and nationality were not released, was hit by debris from the explosion. His body was knocked across the shop. The individual was taken to the hospital for treatment but succumbed to his injuries.

Hanwha Ocean reported this morning, January 15, that production at the Okpo yard has been suspended and that the resumption date will be determined based on the results of the investigation and only after it receives permission from the Ministry of Employment and Labor. 

Immediately after the incident, the company says it informed the police and the Ministry of Employment and Labor. It is believed to have been a gas explosion possibly from a ruptured line, but the investigation will determine the cause and what steps the shipyard is required to take to prevent another similar incident.

Hanwha Ocean advised in a stock exchange filing that it expects “some production disruptions.”

The shipyard reportedly missed its 2023 order target as the company transitions from the former Daewoo Shipbuilding & Marine Engineering to Hanwha Ocean after a controlling interest and management of the company were sold by the government-controlled banks which were the creditors and largest investors in the former DSME. Korea Development Bank had said at the time of the sale that it believed investments were required in the yard’s operations to maintain its competitiveness.

Hanwha Ocean and Samsung Heavy Industries recently entered into a cooperation agreement. The unusual agreement between competitors will have Hanwha Ocean produce blocks for containerships being built at the Samsung yard. Recent reports denied by Hanwha Ocean said the shipyard is focusing on high-value contracts deciding to forego containerships that have lower margins. Hanwha Ocean emphasized that it has a large backlog while its new parent company looks to increase naval work and realize opportunities with its work in military systems.




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