Essential - Sustainability Disclosure Database

Transcription

DSME 2013 Sustainability Report
www.dsme.co.kr
Head Office 85, Da-dong, Jung-Gu, Seoul, Korea Tel +82-2-2129-0114
Okpo Ship Yards 1 Aju-dong, Geoje-si, Gyeongnam, Rep. of Korea Tel +82-55-735-2114
Essential
2013 Sustainability Report
02 - 03
Report Summary and Index
Publication Objectives and Cycle
DSME has published an annual Environmental & Social Report since 2005
and is publishing a Sustainability Report for the first time in 2013. The
aim for these reports is to communicate with stakeholders and provide
transparency and balance in our performance of environmental, social
and economic matters during the report period. DSME is committed
to transparency in our efforts towards continuous development and
sustainable value.
Scope and Period
In principle, this report covers the environmental management and social
contributions of the head office and Okpo shipyard, from January 1st to
December 31st, 2012. Some of the activities of our affiliated companies
and joint ventures are also included.
Distribution and Feedback
This report is published in both Korean and English. You can download it
from our website (www.dsme.co.kr). If you would like a hard-copy, please
contact us (see below). Any feedback, which you can send us via our
reader survey, email or telephone, will be considered in our management
activity.
Reporting Guidelines
Preparation of this report was based on GRI (Global Reporting Initiative)
G3.1 guidelines. DSME has included achievements, performance, future
goals and outlook for each department, as well as statements from the
related executives for a fuller picture of DSME’s situation.
Contents
02
About
this Report
06
Real Business
16
Real Communication
22
Corporate
Governance
28
Real Information
Contact Information
If you have any questions with regards to the report or require additional
information, please feel free to contact us at:
Environmental Management Group, DSME HSE Operation Team
1 Aju-dong, Geoje-si, Gyeongsangnam-do, Korea
656-714
TEL: +82-55-735-9189
FAX: +82-55-735-1264
E-mail: able210@dsme.co.kr
42
HSE
Management
66
Real Globalization
04
Message
from the CEO
08
Business Areas
18
20
Corporate
Summary
Creation & Distribution
of Revenue
24
25
26
Key Performance
At-a-Glance
Stakeholder
Communication
30
Financial Results
54
Growing Together
68
Global DSME
Risk
Management
34
Technological
Competitiveness
58
Organizational
Culture
72
Appendix
21
Ethics
Management
38
Customer
Satisfaction
Daewoo Shipbuilding & Marine Engineering
Message from the CEO
Message from the CEO
Dear stakeholders,
It is a great honor to greet you through this sustainability
report.
DSME strives to become a business respected by the best
in society, a business in which sustainable management is
systemized, putting priority on enhancing customer value and
social responsibility as a member of the global community
and through technological innovation and quality.
In light of these goals, DSME has decided to publish an
annual sustainability report from this year. Since 2005, we
have shared DSME information with the public, including
work environment and social management, through our
Environmental & Social Report. This sustainability report is
designed to promote further communication with you and
expand our sustainability management to all corners of the
world where DSME does business.
The world-wide shipbuilding industry is experiencing global
changes, from increased demand for fuel-efficient/ecofriendly ships, rapid growth in the offshore plant market, to
acceleration of deepwater development, and development of
a North Pole route. DSME is setting the standard for all these
changes.
Our major product line focus has been changing from
shipbuilding to offshore projects from last year. In what has
been the biggest innovation since our establishment, DSME
is raising our partner companies’ capabilities to a world-class
level, with our eyes on becoming the world's best EPCIC
(Engineering, Procurement, Construction, Installation, &
Commissioning) shipbuilding & offshore corporation.
DSME spares no effort towards efficient management and
use of our company-wide resources including deployment of
human resources in the right places, development of facilities
and enhancement of capabilities for each EPCIC stage.
These efforts have resulted in a global shipbuilding first in
2012: more than $10 billion in offshore project orders. This
fact is evidence of DSME’s abilities in this dynamic, growing
sector, and represents over 70% of our total orders. This
achievement has pushed DSME into a leadership role in the
world-wide changes taking place in shipbuilding and offshore
production.
A highlight in our special-purpose vessel sector is the fact that
DSME will develop and construct a 3,000-ton submarine for
the Republic of Korea Navy, the first domestic shipbuilder to
do so. This will be the first submarine developed exclusively
using Korean designs (from fundamental to detailed) and
related technology.
Through consistent innovation and excellent performance
in each business sector, DSME exceeded its order targets
in 2012 by 30%, winning back the world’s No.1 position
in orders received. In addition to building the world’s most
highly-efficient and eco-friendly containership and seeing
it designated as one of Korea’s top 10 new technologies,
DSME won the Prime Minister’s Award in Korean
Technology in 2012, and had 9 of its ships selected as 2012’s
best.
DSME has also acquired international energy saving certi
fication (ISO50001), and the GMS (Generation Management
Systems) certificate from Det Norske Veritas, both enhancing
DSME’s reputation as an eco-friendly shipyard.
DSME enjoys recognition as an enterprise with an excellent
level of sustainability (receiving a “AAA” rating) and was
selected as the best enterprise in machinery/shipbuilding
in the 2012 “Green Ranking” evaluations, organized by
Joongang Ilbo (a major Korean daily newspaper) and the
Ministry of Knowledge.
This year, 2013, is a year of opportunity and risk. DSME is
determined to elevate its status as a leading international
enterprise through innovation and change, sustainably
excellent in economic, social and environmental
performance.
DSME is diversifying and expanding its core technology and
specialized personnel, and aims to be an organization based
on the corporate culture of trust and passion, through open
discussion, respect in labor-management relations, and
satisfaction of the customer in terms of HSE and quality.
Our valued stakeholders: DSME is increasing value by
strengthening its management process, communication
with our employees and volunteer services that make
our employees and their families proud and maximize
shareholder value. We are committed to becoming the
offshore era leader.
Thank you.
Jaeho Ko
CEO
04 - 05
Contracts Won 2010-2012 & Target for 2013 (Value unit: $1 billion)
Projects
Value
2010
78
50
28
DSME won contracts worth USD 14.3 billion in 2012 in the midst of global economic crisis. This is the outcome of successfully entering the offshore
sector beyond shipbuilding, and the efforts of each employee as we strive to become the world’s number one company in shipbuilding and marine
engineering. DSME’s goal is to have firmly established its position as the world’s top comprehensive heavy industries group by 2020 through a
transformation to a total solutions company in the EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) sector and acquiring
a dominant position in new business areas in plant construction and energy.
42
Empowerment of EPCIC in
Shipbuilding, Offshore and
New Business sectors
3
Strategic
Directions
Development of innovative,
customer-oriented solutions
Selection and focus on
competitive products and
services
10.32
2011
14.3
2012
14.28
2013
13.0
• Strengthening viability in more intense competition
• Improve long-term competitiveness
• Increasing responsiveness to influential NOC’s
• Targeting potential demand by anticipating customer needs
• Focus on product types in which DSME excels
• Concentrate efforts on continuous technological and skill development
Real Business
Business Areas- Shipping
Product Mix
1)Ropax
2)318K VLCC
3)16,000TEU Containership
4)160.5K LNGC
Vessels
Value
2010
63
2011
36
5)150.9K LNG-RV
6)180 DWT BC
7)8,000 unit PCTC
8)WTIV
Situation
Orders in 2012 (as of December of the same year) for our domestic
shipyards totaled 214 vessels and 71.63 million CGT, only 61.6% of
2011’s total (266 vessels, 116.30 million CGT).
The shipping industry was under significant pressure from China’s
low cost strategy and an oversupply of bulk carriers and tankers.
Containership orders continue at Korean shipyards due to Korea’s
competitive edge.
Added to this glut of ships has been the declining quantity of goods
being transported (due to the Eurozone debt crisis). Most shipyards
have been suffering. Because of this general slump, Eurozone financial
institutions have reduced the funds available for shipping finance, causing
difficulty in decision-making. Ship owners have overcome some of these
difficulties by retiring ships early and sailing more slowly.
The future is expected to be relatively positive for Korean shipyards now
that demand is expected to increase for transportation of LNG and oil
products. However, global economic volatility still presents a risk for
sudden fluctuations in currency exchange or in raw material prices.
2012 Sales & Achievements
Daewoo Shipbuilding & Marine Engineering is equipped with the world’s best technology in LNG carriers (including LNG-RV) as
well as in all types of commercial ships.
Due to the global downturn that has been the economic backdrop since 2009, market conditions in 2012 were not exactly easy.
Efforts by DSME to secure series orders resulted in orders for twenty of the world’s largest containerships (18,000 TEU), some
of which are due to be delivered during the first half of 2013. This is a signal of change in containership market paradigms.
In 2012 we received orders for 9 vessels (including 4 supertankers) in the shipping sector. As we accurately apprehend and
clearly analyze the demands coming out of changing market conditions caused by sudden environmental change, we were able
to obtain orders for 4 LNG carriers, proving our exceptional skill in building high-value vessels. These orders contributed to $1.34
billion (USD) in 2012 despite the impact on our industry of the present market conditions.
4.58
9
24
2012
2013
6.83
LNG Carrier, SONANGOL SAMBIZANGA
1.34
3.0
The technology behind DSME’s highlyefficient, eco-friendly containerships have been
designated as one of Korea's top 10, for which
we received the Prime Minister's Gold Award
at the 2012 Korea Technology Awards. These
awards are given for development of advanced
products with superior performance. Among
the specific technologies included various
ways to minimize energy consumption (such as propeller
optimization and linear shaping), for the very large container
ships (18,300 TEU class). These containerships are expected to
be more desirable in an environment of stricter environmental regulation
because of their use of reusable, eco-friendly materials and fuel efficiency.
These features also offer companies more stability as they seek to keep
pace with high oil prices.
Crude Oil Tanker, ALMI SKY
Meanwhile the ‘Marco Polo’, a containership owned by CMA-CGM (and
delivered by DSME in 2012) was crowned as the world’s largest, beating
the 15,550 TEU ‘EMMA Maersk’, built in 2006. Marco Polo has a length
of 396m and a width of 54m, and uses the latest eco-friendly technology
and fuel-saving devices. With the electronically-controlled Wartsila 14RT Flex 96C engine, it is designed to be energy-efficient, cut back on use of
Lub Oil, minimize CO2 emissions, and optimize water flow.
Based on order records and technology, 9 vessels finished by DSME in
2012 have been chosen as the year’s best vessels by shipbuilding and
offshore engineering magazines, some of them by multiple magazines.
This is further evidence of DSME’s global acknowledgement as a source
of world-class technology and quality.
Bulk Carrier, VALE BRASIL
Future Goals & Outlook
Although we expect it will take time to find a balance between demand
and the over-supply of ships in 2013, the orders are increasing, especially
in containerships and bulk carriers. Ship owners want their ships to be
inexpensive and designed with the environment in mind. In addition, expectations are increasing that the shipbuilding market is improving.
ROPAX, COTUNAV TANIT
08 - 09
Real Business
Business Areas- Offshore
Product Mix
1) Pazflor FPSO
2) Tombua-Landana F/P
3) Atwood Drillship
4) Petroserv Semi-Rig
Vessels
5) Heerema Pipelaying Vessel
6) Big Foot FPU
7) Petronas FLNG
8) Chayvo Onshore Processing Facility
Value
10
2010
11
2011
12
2012
15
2013
5.09
LNG-FPSO, PETRONAS
6.29
10.41
9.0
Situation
Because of the rapid increase in orders since 2005, the offshore
business has become the new market for big shipbuilders who are
comprehensively competitive in terms of design, production and project
management. This year, orders for large production equipment are
actively in progress and this trend is expected to continue into early next
year.
Competition is expected to be fierce, as more and more shipbuilding
majors have turned their attention to the offshore market. Smaller
shipbuilders are joining Korea’s three major shipbuilding
companies in tapping into the offshore plant market. Overseas
companies from Singapore, China, and other nations are
trying to enter this market as well.
DSME actively pursues orders for large-scale production
facilities, with orders for drilling products expected to maintain
their present pace.
By geographic location, Statoil (the Norwegian state oil and gas company)
is leading North Sea development projects, while development of assets local to
the Gulf of Mexico region is expected to increase again now that the Macondo spill has
been wrapped up.
New development projects are expected to increase around Mexico following exploration of deep sea oil fields
in the region and the Mexican government’s efforts to attract private capital in ventures with Pemex, Mexico’s stateowned oil company.
2012 Sales & Achievements
The offshore sector has become one of the central platforms for DSME growth, making up over 70% of the total order value.
And in keeping with our determination not to be boxed into one area of offshore engineering orders, we obtained orders in
almost every area of offshore products, from FPSO’s, LNG-FPSO’s, fixed platforms and drill ships in 2012. Proving its ability to
build a variety of offshore products, DSME secured orders for twelve of these offshore vessels and platforms. Of special note
is the fact that the company signed contracts for offshore project orders
that exceed $10 billion, a first in global shipyard history.
Regionally speaking, projects in the North Sea were a very active area for
us, with a fixed platform order from Danish state-owned DONG Energy,
and two orders from Norway’s Songa Offshore: semi-rigs they will lend
to Statoil for eight years to operate in the polar region and the North Sea.
Statoil was also active, ordering a fixed platform to explore the Mariner
oil field on the British continental shelf. North Sea projects need to be
equipped to operate in a harsh climate, and these orders show the
confidence of our clients in our technology and experience.
Fixed Platform, STATOIL
DSME was awarded a contract to build an LNG-FPSO for Malaysian
company Petronas, making us the first shipbuilder in the world
to deliver such a vessel. This achievement is meaningful in that
it provides a favorable foothold in the new LNG development
projects.
Finally, another shipbuilding industry first was realized when DSME
received a single order from Transocean Ltd. for four drill ships at once.
Semi Rig, PETROSERV
Subsequent orders such as these are evidence of DSME’s capabilities
in offshore production, and ability to keep pace with diversified market
trends. We anticipate this to continue in the future as demands for offshore products increase.
Given the current situation of continuing high oil prices and growing demand for various types of energy in 2013, DSME expects to continue
adding new types of projects to its expansive repertoire. This will allow
us to continue meeting the needs of our clients and the market.
Drillship, ODEBRECHT
10 - 11
Real Business
2013
Business Areas- Naval Ships
Vessels
Value
5
2010
3
2011
3
DSME designs and builds a variety of state-of-the-art vessels,
including destroyers, submarines, frigates, and AOEs (combat
support vessels), each offering superior performance.
Projects include Aegis destroyers for the Korean navy,
a frigate for Bangladesh, a training ship for Malaysia, a
submarine for Indonesia (a first for Korean shipyards),
AOE combat support ships to the UK (a traditional naval
power), and an agreement to build the first 3,000-ton
submarines for the Korean Navy.
Surface Navy Ships
After the international navy ship market was opened to DSME with delivery of a 2,000 ton frigate
to Bangladesh in 2001, we have built 4,000 ton and 5,500 ton destroyers, frigates, OPVs and a variety of
rescue and naval support ships. Recently, the company has become the first non-British shipbuilder to enter into
a contract with the British navy.
World’s first warship exporter to the British Navy
DSME has signed a $708 million (£452 million) “MARS” contract with the UK Ministry of Defense to construct four 25,000 ton
AOEs (combat support ships) by 2016. These vessels support aircraft carriers and destroyers with fuel, and are evidence of
recognition for DSME by the world leader in development of the global shipbuilding industry (the UK). They also mark the first
time the UK Ministry of Defense has awarded a foreign shipbuilder with orders.
This contract comes on the heels of a $1.1 billion submarine construction contract with the Indonesian navy, and is the second
largest contract for Korea’s defense industry exports. There was intense competition with international players – for example,
the Prime Minister of Italy visited the UK in an effort to obtain orders – but DSME’s strategy was to establish a consortium with
BMT, a local enterprise. DSME’s trust and passion is connecting Asia, Africa and the British Commonwealth through these
warship exports.
0.65
1.16
2012
7
Besides establishing a dominant presence in commercial shipping and
the offshore sector, DSME is also in a strong position to provide naval
ships built with the latest technology.
12 - 13
2013
Logistics Support Vessel(Designed by BMT Defence Services)
2.45
1.0
Submarines
A 3,000 ton submarine that opens the door to the world’s navies
DSME will design and build two 3,000 ton next-generation submarines
for the Korean Navy to be delivered by the end of 2022, a contract worth
$1.56 billion.
DW 10000D Destroyer, Aegis Class
This is the first time Korea will develop its own submarine, from basic
design, details, and related technology. Other submarines owned by
the nation’s navy are based on German designs.
Since our first order for a KSS-I submarine named ‘Jang Bo Go’ in
1987, DSME has built or received orders a total of 17 submarines
(9 KSS-I, 3 KSS-II, 3 Indonesian submarines and these 3,000 ton
submarines. It is a record performance for domestic companies,
and is evidence of DSME’s recognition at home and abroad.
In addition, the Jangbogo I class submarine constructed by DSME received recognition for its performance during a number of RIMPAC training exercises, and demonstrated complete safety through a voyage of 1
million miles without accident. This feat was a 16-year long achievement
and set a world record, indicating the quality of DSME submarines.
DSME 1400 Class Submarine, Export Model
The 3 submarines for Indonesia were DSME’s first foreign submarine
projects, and were secured through DSME’s participation in the Indonesian submarine performance improvement program in 2004. The order
for these 1,400 ton (DSME 1,400 Class) submarines was awarded to
DSME in December 2011 by Indonesia’s Ministry of Defense.
DSME is the only shipbuilding company in Korea to receive international
orders for submarines, and due to our rapidly growing skill in this area,
we look forward to an increase in orders for DSME-built submarines.
Offshore Patrol Vessels
Real Business
2013
New Business Areas
Wind Power
Wind power is one of the fastest growing energy sectors in the world, which largely
came into existence due to uncertainties resulting from climate change, environmental
degradation, and dwindling of fossil fuel stocks. Wind turbine demand has been steadily
growing due to the view that environment-friendly policies may be one of the ways to
boost sluggish economies.
DSME has been strongly promoting its wind power business together with its subsidiaries
DeWind Co. and DSME Trenton. In September 2009, DSME acquired DeWind Inc.,
an American wind turbine company (with R&D offices in Germany), opening up North
American and European markets, and started integrating DSME's world class marine
capabilities with DeWind's technology and experience. And in cooperation with the
government of Canada, DSME established a new plant in 2010, DSME Trenton (Canada)
that manufactures wind turbine towers and blades.
DSME develops offshore wind turbines through application of technology accumulated
from its shipbuilding and offshore experience into the main components of wind turbines
(blades, bearings, gear boxes, generators, and tower and control systems). We believe
this synergistic relationship between wind power generation and offshore production will
result in success.
Currently, DSME runs a full-scale production upon completion of development for D9.1
and D9.2. It is also developing a next-generation 3MW onshore wind generator.
In December 2012, a US wind turbine farm developed in company with DeWind and
KOSEP, was completed and began commercial operation. The Novus 120MW wind
generator farm in Oklahoma is the largest overseas wind farm created with Korean backing.
Novus is also a good example of shared growth with domestic SMEs in equipment delivery
and equity investments. It can potentially generate 430 million KWh/year with its 60 2MW
wind turbines (from DeWind), enough for the domestic use of 120,000 households.
Through this, DSME has realized 170MW of accumulated supply after getting onboard the
offshore wind power business with DeWind in 2009, and has maneuvered into a better
position in the domestic and foreign wind power market, a market with the potential to
become a leading side of DSME’s business.
Plants
DSME offers various types of advanced plant-related technology in gas
(including a Barge-Mounted Power Plant), coal and oil, onshore plants,
nuclear plants, petrochemicals and also “total solutions” which include
community-based facilities.
DSME has exclusive technology and is pioneering new markets
to develop our own floating power plants (BMPP) based on our
world-leading shipbuilding capacity and expertise in offshore
plant construction.
BMPP’s (Barge-Mounted Power Plants) are movable power
plants constructed with pre-fabricated modules. The entire plant
is mounted in the DSME shipyard on a single barge, ensuring
controlled conditions for optimum quality and cost-effectiveness,
and on-time delivery to hard-to-power areas such as islands or
the ocean.
Coal-fired power plants with CCS (Carbon Capture & Storage)
are CO2 power plants integrated with capturing facilities using
commercially-proven carbon dioxide absorption (using harmless
inorganic chemicals), a technology that may see wide use in the
petrochemical industry.
BMPP constructed by DSME can mount different types of
electricity-generating facilities using gas, oil and even coal, in
consideration of fuel supply and operational ease. In addition,
construction periods can be shorter than for ground generator
facilities, and construction costs can be reduced by minimizing the
work and maximizing quality on site. With future environmental
regulations in mind, BMPP’s offer flexibility as eco-friendly
generation facilities when combined with CCS (Carbon Capture
& Storage) technology.
Combined Cycle BMPP
DSME is ready to provide highly-stable BMPP’s to the desired
location at the desired time.
Coal Fired BMPP
14 - 15
2012
• Pazflor FPSO completed, the world’s
largest floating production, storage &
offloading vessel
2011
2010
• Rejoins the club of companies
earning KRW 10 trillion in revenue
– KRW 1 trillion in operating profits
2009
• $10 billion export award received
on 46th Trade Day
• World’s largest floating dock debuts
at the DSME yard
DSME endeavors to continually satisfy all stakeholders through constant communication and reflection on our management.
1973
1981
1997
2005
2008
• Construction begins of the Okpo Shipyard
• Dedication ceremony for the Okpo Shipyard
• Daewoo-Mangalia Heavy Industries Ltd.
established in Romania
• DSME Shandong Co., Ltd. (DSSC) established in Shandong, China
• DSME Oman established
• 18,000 TEU containership wins Gold
in Korea Technology Awards
• International energy-efficiency
certification (ISO50001) obtained
• Commercial operation at the Novus I
(80MW) wind farms begins in Oklahoma,
USA
• DSME ENR (a subsidiary specializing
in energy exploration) absorbed
• Nine vessels chosen as “Outstanding
Vessels” by international shipping
magazines
Real Communication
18 - 19
Key Performance At-a-Glance
1
World’s top in orders received
Construction of offshore projects quickly
emerging as core business for DSME
Company-wide resource
management to obtain EPCIC abilities
Successful performance in new
projects
Competitiveness in ordering through
merger with DSME ENR
Strong demand for special ships
“Right now”
In 2012, DSME realized consolidated sales of
KRW 14.0578 trillion and orders worth $14.3
billion (excluding its subsidiaries). DSME is the
only company to exceed its orders target in
the shipbuilding industry and has regained the
top spot in orders received in just two years.
Before this, DSME had exceeded $10 billion
dollars in orders for three years in a row.
For the first time in global shipyard history,
DSME received offshore project orders
exceeding $10 billion. Revenue for offshore
projects has vastly increased from 31%
to 47% in total company sales, with total
revenue increasing by KRW 2 trillion to KRW
5.8 trillion.
To keep up with changes required as DSME
orients itself more towards offshore business,
the company is able to quickly redistribute
its human resources, and build infrastructure
such as factories. DSME is also strengthening
its project management abilities, acquiring
an outstanding workforce, and ensuring
key equipment supplier and technical skills.
Effective management and distribution of
resources is underway as well to improve
competitiveness in each sector of EPCIC
(Engineering, Procurement, Construction,
Installation, Commissioning).
DSME has successfully delivered the world's
largest 16,000 TEU containership, and is con
structing even larger containerships, able to
carry an unprecedented 18,000 TEU. In 2012,
DSME had the opportunity to gain additional
construction expertise through delivery and/
or construction of several other high level
projects: Pipe Laying Support Vessels for
Allseas and Heerema, a fixed platform for
Arkutun Dagi, CLOV FPSO, and a passenger
ship.
DSME has secured a competitive edge in
ordering and efficiency in management by
merging with DSME ENR, an oil, gas and
mineral resource exploration subsidiary, and
bringing it in line with DSME’s direction for the
energy sector.
This year, the special purpose ship market is in
a bullish mood. Starting with orders for AOE’s
(Combat Support Ships) from the UK’s Royal
Navy, and signing of an MOU with Peru to
collaboratively produce naval vessels, DSME’s
proficiency in defense projects has been
acknowledged. DSME will also build two 3,000
ton submarines for the Korean Navy.
2
3
4
5
6
7
8
9
10
11
12
Improving a corporate culture of
communication
Top-rated in corporate sustainability
Symbiotic development
People growing with the community
Strengthening technology
competitiveness
Internationally-recognized technology
One of the biggest changes in 2012 was
the establishment of greater communication
throughout the company. DSME’s
management team, led by CEO Jaeho Ko, has
been meeting with new recruits to listen and
communicate, and holding field meetings with
production staff. These are part of DSME’s
efforts to strengthen a sense of community
and teamwork among our personnel.
DSME is the sole receiver of Eco-Frontier’s
'AAA' rating in corporate sustainability
in the shipbuilding sector. Eco-Frontier
is a firm specializing in assessment of
sustainability. With international ISO50001
certification (energy savings) and GMS
(Green Management System) from DNV,
DSME has taken another step towards its
goal of becoming the world’s eco-friendliest
shipbuilding and offshore engineering
company.
DSME actively assists small to medium-sized
corporations and has signed onto agreements
for ‘fair trade and mutual growth’ with our
strategic partners last year. The “DSME
Family Mutual Growth Agreement” enjoys
the participation of 130 strategic partners, and
the company has been funding management
of a financial aid program for mutual growth.
These efforts have resulted in DSME receiving
a ‘Good’ rating in mutual growth evaluations.
DSME is the first in the Korean shipbuilding
industry to establish an in-house heavy
industry academy, hiring high school
graduates and putting them through a
systematic process towards professionalism
as a shipbuilding and offshore workforce.
DSME also enjoys a closer relationship with
the surrounding communities through the
“Love My Neighborhood” project, a new
social contribution activity.
A Technical Committee is in place for total
directional collaboration between the Seoul
offices and the Okpo yard, in terms of product
strategy, design and research, bringing the
entire team behind technology and product
development. DSME has also established
cooperation with an external design entity
and local cluster (both in Korea), and an
engineering center in Jakarta, Indonesia. It
has also developed Korea’s first simulator for
drilling and operating facilities.
DSME’s FPSO (Floating Production, Storage &
Offloading) has been chosen as a world-class
product, giving it 9 world-class products (along
with a Korea Technology Gold Award for our
18,000 TEU containerships currently under
construction), and has been chosen as one
of the top ten new technologies. In addition
to the 9 world-class products, a leading
international shipbuilding and maritime journal
selected nine of our vessels as the top vessels
built in 2012.
Real Communication
Corporate Summary
Creation & Distribution of Revenue
DSME has specialized in shipbuilding and offshore engineering throughout the challenges and successes of the past
forty years. We are world-class competitors in a variety of vessels, plants and special ships. Beginning last year, DSME
has begun transformation to become the world’s top shipbuilding and offshore engineering EPCIC company, and the
best company for comprehensive shipbuilding and offshore construction.
DSME is committed to financial responsibility by distributing value to our shareholders, employees, local
communities and more.
Corporate Profile
Direct revenue
Company Name
Daewoo Shipbuilding & Marine Engineering Co., Ltd.
Established
October 11th, 1973
- October 23rd, 2000: Spun off from Daewoo Heavy Industries Ltd.
- February 2nd, 2001: Listed on KOSDAQ
CEO
Jaeho Ko
85 Da-dong, Jung-gu, Seoul, Korea Tel. 82-2-2129-0114
Shipyard
1 Aju-dong, Geoje-si, Gyeongsangnam-do, Korea Tel. 82-55-735-2114
Affiliates &
Subsidiaries
DMHI (Romania)
DSSC (China)
DSEC (Busan, Korea)
WELLIV (Gyeongnam province, Korea)
FLC (Gyeonggi province, Korea)
DSC (Seoul, Korea)
SHINHAN Machinery (Ulsan)
DEWIND (USA)
DSSW (Jeollanam province, Korea)
DSME Oman (Oman)
KLDS Maritime (Panama)
DK Maritime (Panama)
DSME SMC (Seoul, Korea)
Revenue
KRW 14.0578 trillion
Operating Profit
KRW 486.3 billion
Yard
4.044 km² (Production lot – 3.379 km²; Training institute etc. 563,000 m²)
- 4.597 km² including company housing
No. of Employees
39,311 employees (DSME 12,863, Strategic Partners 26,448)
Key Products
Local communities
Investing in nearby communities, such as
funds for Seyoung Academy
183.104
1.692
(Unit: KRW billion)
(Unit: KRW billion)
Investors, dividend payouts and
interest expenses
592
(Unit: KRW billion)
Reinvestment
Investment in financial instruments, land,
buildings, and equipment.
Dividends to shareholders totaled KRW
94.523 billion, while interest paid to
creditors equaled KRW 88.581 billion.
14.0578
(Unit: KRW trillion)
Revenue from sales and other
revenue, excluding expenses
and depreciation
99
(Unit: KRW billion)
Commercial
Vessels
LNG carriers, oil tankers, container ships, LPG carriers, wind turbine installation
vessels, coal carriers, car carriers, chemical carriers, crude oil tankers,
passenger ships & others
Offshore plants
FPSO/FPU, fixed platforms for oil & gas exploration and production, rigs,
onshore plants (chemical, desalination, power), industrial facilities (off-loading
etc.), steel structures (bridges, cages, etc.)
Specialty Vessels
DSME realized sales of KRW 14.0578 trillion in the midst of global recession. This outcome
results from successful entry into the offshore sector and the whole-hearted efforts of our
employees to become the number one company in international shipbuilding and offshore
production.
Distribution of revenue per stakeholder
Head office
Location
20 - 21
Submarines, destroyers, submarine rescue vessels, other warships, AUVs and
other specialty vessels
Government and municipality taxes
1.255
11.48
Workforce
All products and services for
business
Includes raw materials, changes in
inventories, employee benefits, depreciation,
intangible asset amortization, fees, travel
expenses, transportation, administrative
service fees, rent and other related costs.
This is inclusive of employees on the payroll,
student grants, the cost of Social Security
Insurance, retirement (pension) benefits, and
other related costs.
Includes income tax expenses (KRW
85.347 billion) on a consolidated basis and
other tax bills (KRW 13.657 billion).
Real Communication
22 - 23
Corporate Governance
DSME has enhanced company and shareholder value through responsible and transparent management. This includes
clarifying the rights, roles, and responsibilities of the Board of Directors, the Audit Committee, and our internal and
external directors.
Board of Directors
DSME complies with all legal procedures to ensure they are independent of management
or blockholders who have substantial equity positions and formalizes these legal procedures
through the articles of association. All nine directors have been selected in alignment with
these legal procedures.
The board of directors is made up of 3 internal, 6 external directorsr.
As of April 2013:
Name
Profile
Position
Korea University (graduate)
(previously Overall Business manager)
CEO & President
Gabjoong Kim
(previously Chief of Finance at KDB headquarters)
Senior Executive VP & CFO
Donghyuk Park
Seoul National University (graduate)
(previously Production Support Division leader)
Senior Executive VP & CPO
Gyeongtaek Han
Seoul National University (graduate)
(presently also Science & Technology Visiting Professor at
Seoul National University)
External Director
Sanggon Go
Howon University (graduate)
(presently also Korea Public Relations Association Auditor)
External Director
Gwangsik Shin
Yonsei University (graduate)
(presently also Visiting Researcher, Korea Development
Institute)
External Director
Jeonhyeok Jo
(presently also Economics professor at Incheon University)
External Director
Sanggeun Lee
Sogang University (graduate)
(presently Business Administration professor at Sogang
University)
External Director
Youngmin Kwon
(presently also General Manager of Corporate Banking
Dept 4 at KDB)
External Director
Jaeho Ko
Audit Committee
In accordance with Articles 415-2 and 542-11 of the commercial law, DSME’s Audit Committee
consists of 6 external directors. Furthermore, under related laws and operational regulations
for audit committees, the committee operates independently of any other entity.
Evaluation & Compensation
Compensation for internal and external directors are within the range of remuneration approved in a general meeting.
(Unit: %)
31.26
2012 Board of Director Activities
DSME held 14 Board of Director meetings in 2012, with an attendance rate of 95%. Fifty-two
agenda items were proposed and addressed.
Meeting Dates
Current Shareholders
KDB Bank
17.15
Agenda
2012. 01. 27
Acquiring Exmar’s equity positions for NIDAS and 4 other items
2012. 02. 23
Establishing joint venture and 1 other item
2012. 03. 05
Financial statements and sales reports for fiscal year 2011 and 2 other items
2012. 03. 20
Joint and several guaranty for the promotion of DeWind Co. and 1 other item
2012. 03. 30
Selecting a representative director
The Board of Directors (BOD) resolves significant issues related to management policy and operational
implementation such as general meetings and rules, articles of corporation, and operational standards. The Board of
Directors resolves major issues and reflects management and employee suggestions and shareholder opinions that
have been received through general meetings and investor relations. The Board also monitors for potential conflicts
of interest between parties, working to reduce them by sharing information in advance. The Board of Directors also
includes professional committees such as an Audit Committee and a Committee for Recommendation of External
Directors.
2012. 04. 23
Increasing capital for KLDS Maritime and 2 other items
2012. 05. 21
Providing joint and several guaranty for securing the site over the Gulf of Galsa and
4 other items
2012. 06. 25
Establishing an overseas affiliate in Jakarta and 2 other items
2012. 07. 23
Selling real estate and 4 other items
2012. 08. 27
Changing the address of an overseas affiliate in Kazakhstan and 3 other items
Committee for Recommendation of External Directors
With four external directors and the executive director, DSME is able to meet the legal requirements for firms to
have external board members make up half or more of this committee, which selects external BOD members in
general meetings.
2012. 09. 24
Donations and 1 other item
2012. 10. 25
Acquiring and merging DSME ENR corp. and 4 other items
2012. 11. 26
Offering guaranty to an overseas affiliate (DMHI) and 6 other items
2012. 12. 27
Planning business for 2013 and 4 other items
Financial
Services
Commission
18.26
Foreign
Ownership
1.22
Treasury
& ESOP
32.11
Other
Real Communication
Stakeholder Communication
Risk Management
Communication with stakeholders is fundamental to all DSME managerial activities for sustainability.
DSME manages risk through the participation of management and workers in processes designed to
effectively respond to internal and external changes in situation.
Major stakeholders and communication channels
Risk management system
DSME evaluates the influence and value of various shareholders and divides them into 5 categories: Stockholders, Clients,
Managers & Employees, Subcontractors, and Communities. Through various channels of communication, DSME gathers
opinions on various issues that occur throughout the organization and reflects them in its managerial activities.
Risk management councils handle key risks at the enterprise level, analyzing each risk to determine the causes and the risk management activities necessary (towards avoidance or reduction of each risk), and evaluating the risk management process. Temporary councils engage in
identification, inspection, pre-management and post-management of the risks.
Stockholders
Clients
·General meetings
·International and domestic presentations and road shows
·Participation in domestic and overseas conferences
·Visiting domestic and overseas institutes
·Hosting investor relations events, preparation of annual
reports, designing fact book, and consultations by phone
·Receipt of client claims and provision of consultations
·Website for shipbuilding warranty service
·HSE workshops
·Promotional booklets for clients
CEO
Interim
Council
Currency
Management
Taskforce
Identify and respond to
other major risks
Business
Investment
Review
Risk management
of exchange rate fluctuation
Managers & Employees
·Joint Management Council
·Labor-Management Council
·Occupational health & safety committees
·Ethics Counseling desk
·Grievance channel
·Occupational Safety & Health Committee
Responsible
departments
Orders
Review
Committee
Risk management for new /
existing business
Communities
Subcontractors
·Koje College (owned & operated)
·Support for regional culture events
Project risk
management
(for subcontractors)
·Partnership events
·Conferences & seminars
Communication Activities with Shareholders in 2012
Item
Investor Relations (IR)/
Overseas & Domestic
Road Shows
Conference Participation
24 - 25
Risk
Management
Division
Risk management of
various sectors
Classification
Frequency
Total
Domestic
At least quarterly
4
Overseas
At least semi-annually
0
Organization
Domestic
At least semi-annually
5
Risk Management Division
Managing risk in each division.
Overseas
At least quarterly
6
Orders Review Committee
Risk management activities from pre-order stages of shipping/offshore
projects to warranty service
Main risk response activities
Visits to external IR events
As needed
6
Hosting IR events
As needed
364
Business Investment
Review Committee
Yard Tours
As requested
13
Currency Management
Taskforce
Catalog printed/delivered
Annual Report
Annual Report
Interim Council
Response Activities
Risk management activities for new and existing business
Minimization of impact from exchange rate fluctuation
Identification and response to identified risks
Real Communication
Ethics Management
DSME Activities Promoting Ethics
DSME recognizes its obligation to promote a healthy corporate culture, be socially responsible, and endeavor to become
a respected sustainable corporation, strong in corporate ethics.
Ethical Management Strategy System
System/Program
- Pledge of principles
- Ethics counseling
- Internal reporting
system
- Ethical risk map
Campaign/Event
- Holiday gift exchanges
not permitted
- Congratulatory gifts not
permitted
- Corporate ethics catchphrase contest
Training/Promotion
- Ethics Education
-E
thics Conferences
Exchange/Cooperation
-C
orporate ethics for
subsidiaries
-C
orporate ethics for
subcontractors
Business Ethics Vision
Realizing business possibilities through building internal and external trust
Ethics pledge Signed by 5,793 DSME employees (99.3% of mandatory
number)
Business Ethics Aim
Settlement of a culture of corporate ethics
Ethics counseling Consultation channel set up to handle corporate ethics-related questions or ethical dilemmas.
Practicing corporate ethics
Practicing ethics on the job
•Business ethics
•Make plans & perform
•Measurement of employee understanding
of ethics and their importance
•Guidelines for ethical behavior
•Education on ethical behavior, pledges
•Protection of and benefits for
•whistleblowers
•Voluntary reporting system for inappropriate
gifts or requests for favors
Clients
Staff
•The best products and services
•Honest and cooperative
relations
•Participation on global issues
•Transparent and fair business
management
•Fair evaluations and opportunity
•Improving quality of life
Cooperating businesses
•Fair competition for contracts
•Transparent contract
procedures
•Cooperation for mutual growth
Shareholders
•Developing corporate value
•Transparent management,
honest information
Community
Government
•Economic and social
contributions
•Protection of environment,
respect for traditions and
customs
•Adherence to law
•Honest calculation of taxes
•Cooperation between
research and government
policy
Code of Ethics
The Code of Ethics describes the values that DSME pursues and the standard of conduct that all employees are
to observe. Some areas of the Code are inadequate and are in the process of modification in consultation with the
relevant departments. In 2012, DSME added a clause prohibiting business with persons who have resigned over
charges of misconduct. This is intended to ensure DSME does not engage in business with any company run by
persons who were fired or resigned over charges of corruption or other wrongdoing.
Ethics code
Guidelines
▶ Customer-oriented
▶ Gifts, entertainment, conveniences, all
kinds of bribery prohibited
▶ Intervention, unfair favors prohibited
▶ Win-win cooperation with partner
companies
▶ Limitation on personal entertainment
with stakeholders
▶ Separation of private and public matters
▶ Contribute to development of the nation
and society
▶ Limitation on notification of personal
special events (obligation to attend etc.)
▶ Fair competition
▶ Mutual development of employees and
the company
▶ Non-business related financial transactions prohibited
▶ Respect for shareholders
System/
Program
Campaign/
Event
Exchange/
Cooperation
CEO letter to workforce on ethics Ethics guidelines were delivered to all
employees and affiliated companies
World leader in marine technology
Stakeholders
Training/
Promotion
Major activities in 2012
Corporate Vision
Core Programs
26 - 27
▶ Unfair work orders
▶ Political involvement prohibited
▶ Ban on business with persons fired/
resigning over charges of misconduct
Words from an Executive
Whistleblower system A system for handling reports of unethical behavior, compensation and protection for whistleblowers has been established.
Reports can also be done online or by mobile phone. In 2012, 32 cases of
wrongdoing were reported, with 23 disciplinary actions and 6 rewards for
whistleblowers totaling KRW 48 million.
Unethical behavior risk map DSME has analyzed risk factors and reasons
for unethical behavior at work. Reviews are conducted on a regular basis on
1,001 items in 25 business functions.
Ethics education Ethics education is done on a regular basis to internalize
DSME’s corporate ethics in our workforce. In 2012, online education was
done 23 times for 6,000 people, and offline 11 times for 943 people.
Ethics PR DSME uses many public relations tools to provide accurate information about our promotion of corporate ethics. A webpage has been
available in both English and Korean since last year and also releases weekly
articles on corporate ethics in our internal publication “Hae Oreum”.
Supporting corporate ethics with our business family and partners
DSME actively assists in corporate ethics for our business family and partners with lectures and seminars. In addition, DSME seeks mutual progress
in ethical management through discussions with 204 partners.
Participation in corruption-fighting assessment DSME has confirmed areas
vulnerable to corruption and directions for improvement through participation
in a corruption-fighting assessment organized by Transparency International
(TI). DSME ranked “moderate” in corruption-fighting, the top among Korea’s
5 defense companies. A total of 129 defense companies from different nations participated.
Evaluation of Employee Ethics DSME surveyed all of its employees and
1,129 partner companies to evaluate their level of ethics and identify areas of
vulnerability. Results were disclosed to the participants, and we are pushing
ahead with system reform as well as promoting corporate ethics.
Kyusang Moon, Vice President, Corporate Ethics Office
Firms grow through support from clients and trust
from society. This necessitates ethics management that is
proactive in compliance with the law and social obligations,
meeting stakeholder values and providing quality products
and services in the process.
DSME has a three-pronged approach to ethics
management: all managers and employees accept the ethics
guidelines and that they are important, ethical practices
are incorporated into all levels of work, and personnel are
ethical in their individual jobs.
We are working to address customers and stockholders
in an honest, responsible manner, respecting the values
and personalities of individual employees, seeking mutual
growth with our suppliers, and fair competition with our
peers.
We also endeavor to honor our corporate conscience
through each employee working hard, developing their
individual careers, avoiding self-interest as a priority,
complying with laws and regulations, and respecting
shareholders.
In 2013, a system will be implemented to facilitate fairness,
transparency, and accountability for individual jobs, based
on findings from the corporate ethics survey, in the interest
of strengthening those corporate ethics and DSME’s
competitiveness.
Sales Breakdown (Value unit: %)
Other
Tanker
Containership
11
25
10
47
Offshore
7
LNGC
DSME has implemented efficiency in all aspects of the organization's operations as well as promoting sustainable growth and
consolidating its position as a global leader.
ZVEZDA DSME
Shipyard in Russia
Moscow
Germany
Oslo
Russia
D&H Solutions
Okpo, Korea
Seoul, Korea
Netherlands
London
Canada
Kazakhstan
Frankfurt
Romania
Mangalia
USA
Korea
Shandong
Shanghai
Greece
Dubai
Houston
Tokyo
Oman
NIDAS Shipping JV in Nigeria
Ecuador
Kuala Lumpur
Singapore
4
Luanda
15
PAENAL Yard in Angola
20
2
Indonesia
Joint Ventures
Jakarta
Rio de Janeiro
Overseas Offices
Affiliates & Subsidiaries
Ship Yards
Brazil
Perth
1
Building
Real Information
30 - 31
UP Success
Daewoo Shipbuilding & Marine Engineering received consolidated orders worth KRW 14.0578 trillion, and
realized a net profit of KRW 175.9 billion. With sales of $14.28 billion, DSME became the only company within
its field to meet its order targets, and exceed them by 30%. DSME also managed to regain the Number 1
position in the world in obtaining orders. Last year was the third year in a row for the company to exceed $10
billion in offshore projects, the first in the global shipyard industry.
2012 New Order Breakdown (Value unit: %)
2012 Order Backlog Breakdown (Value unit: %)
Annual consolidated sales
17
74
0
6
14.0578
13
4
2012
17
KRW
56
5
trillion
2012
Total assets
16.122
9
KRW
trillion
Total orderssales
14.28
$
Offshore
LNGC
Tanker
Other
Kapjoong Kim, Vice-President, Financial Office
billion
Containership
Merger of DSME ENR with DSME
Award for Excellence
Effective date of merger : December 27th, 2012
Purpose : Enhance management efficiency and maximize existing business synergy
DSME received the Award for Excellence at the 12th Annual Korea IR Awards
on October 24th, 2012. As a result, KOSDAQ listing fees and annual dues
have been waived for one year.
Recognizing that DSME is in the midst of sustained low growth
due to the global economic downturn, not from a temporary
phenomenon, we focus on maintaining sound financials as we
endure a long-term recession and achieve sustainable growth.
Accordingly, we have dedicated ourselves to enhancing our financial
health and managing our financial liquidity. As was the case in
2012, DSME will continue to reduce its short-term borrowing and
increase low-rated long-term loans such as through issuance of
corporate bonds, further promoting stable liquidity. By continuously
securing the maximum in loans from financial institutions, we
continue to prepare for expansion of the business and any shortterm lack of liquidity.
Additionally, we will continue to invest in new businesses and
infrastructure to strengthen growth in the future. Engineeringoriented EPCIC competency will be enhanced and related
investments will, in turn, also continue.
The level of monitoring for financial risk will be ongoing, as
significant investments come with significant risk. Investment in
new business areas will be done after determining that it aligns with
corporate vision, identification of potential synergy, consideration
of financial structure and exit strategies, and review of investment
performance.
1
Real Information
32 - 33
Financial Results
KEY PERFORMANCES
DSME has established a solid foundation to become the world's leading shipbuilding and offshore company in the
midst of difficulty in 2012. DSME continues to get closer to realizing its dream of becoming the world's leading
shipbuilding and offshore company.
•T
otal orders received: $14.3 billion
•T
hird year in a row to exceed $10 billion
•T
he only company in the shipbuilding industry to exceed its order target by 30%
Summarized Financial Statement
Key Financial Ratios
(Unit: Million KRW)
2012
2011
2010
Current Assets
7,160,493
7,617,976
8,103,089
Non-current Assets
8,961,735
9,041,752
7,719,495
Total Assets
16,122,228
16,659,728
15,822,584
Current Liabilities
8,172,670
9,519,608
9,236,306
Non-current Liabilities
3,395,300
2,638,078
2,559,457
Total Liabilities
11,567,970
12,157,686
11,795,763
Share capital
961,954
961,954
961,954
Share premium
(42,923)
(43,276)
(31,399)
44,940
60,214
111,143
3,707,642
3,602,822
3,034,830
Non-controlling Interests
(117,355)
(79,672)
(49,707)
Total Equity
4,554,258
4,502,042
4,026,821
16,122,228
16,659,728
15,822,584
Reserves
Retained Earnings
Total Liabilities and Equity
2012
2011
2010
87.62%
80.02%
87.73%
254.00%
270.05%
292.93%
33.71%
26.25%
20.54%
3.14
9.27
7.40
Operating Income Margin
3.46%
7.83%
9.23%
Net Income Margin
1.25%
4.66%
5.97%
ROA
1.09%
3.89%
4.90%
ROE
3.86%
14.40%
19.27%
Sales Growth
1.11%
7.03%
Operating Income Growth
-55.34%
-9.17%
Net Income Growth
-72.87%
-16.47%
Total Assets Growth
-3.23%
5.29%
Current Ratio
Debt-to-Equity Ratio
Stability
Total Borrowing to Total Assets
Deposit Interest to Operating
Income
Profitability
Growth
* Based on K-IFRS
Summarized Income Statement
(Unit: Million KRW)
2012
2011
2010
Sales
14,057,819
13,903,268
12,989,486
Cost of Sales
12,921,887
12,269,143
11,175,000
1,135,932
1,634,125
1,814,486
649,667
545,387
615,889
Gross Profit
SG&A Expenses
Operating Income
486,265
1,088,738
1,198,597
Non-operating Income
1,525,353
1,385,881
1,320,283
Non-operating expenses
1,746,522
1,477,039
1,478,713
Income before Income Taxes
265,096
997,580
1,040,167
Income Taxes
89,243
349,325
264,131
Net Income
175,853
648,255
776,036
* Based on K-IFRS
Total Assets
Total Equity
Sales
(Unit: Billion KRW)
(Unit: Billion KRW)
(Unit: Billion KRW)
16,122
16,660
14,058
4,554
4,027
12,990
4,502
13,903
15,823
2010
2011
* Based on K-IFRS
2012
2010
2011
2012
2010
2011
2012
2
Building
Real Information
34 - 35
UP Credibility
It has been 30 years since establishment of the Central Research Laboratory. This laboratory, named the DSME
Shipbuilding/Marine Facility Laboratory in December 1982, is the center of constant and innovative shipbuilding
and offshore plant research. DSME plans to increase research investment in quality and performance of
projects forecast to be the future.
Total eco-friendly technology development
investment as a percentage of investment in
technology development
Technology Slogan
Creating unlimited
value and ocean
technology
18.11%
Total technology manpower
‘Challenge the Ocean, Change the Future’
400
Bangeun Jung, Vice President, Chief Technology Officer
R&D Cost
(Unit: KRW 1 million)
Registration & Acquisition of Intellectual Property
R&D investment / sales [R&D cost ÷ current sales x 100]
101,612
0.7%
2011
102,395
0.7%
0.7%
R&D Performance
▶ DSME Smart Ship System & Service System Development (I)
▶ Research on low-noise and vibration on cruise ships
▶ 5-axis smart robot offline programming system
▶ Energy-saving temperature control air jacket
▶ High-performance air jet nozzle for cleaning
Utility Models
Total
Domestic
Applied
931
397
1,328
Registered
121
18
139
Overseas
Applied
71
x
71
Registered
14
x
14
1,137
415
1,552
Total
2010
87,803
Patents
Rights
2012
▶ DSME LNG FPSO design technology for sulfur recovery
and liquefaction process
▶ Robotic steel pipe welding system
▶ Eco-friendly vessel system
*O
nly patents and utility models applied for and registered for domestic and overseas
in 2012 are recorded. Overseas applications include PCT applications.
“Providing the world’s best engineering solutions.”
“Creating a first class EPCIC company maximizing product
value and prioritizing engineering.”
These are the mission and vision for the technology development
organization. The starting point is to develop and increase
engineering-centered marine EPCIC competency.
The Technology Division is devoting itself to establishing a
foundation for ocean-based design and developing foundational
technologies in such areas as logistics, installation, and sub-sea
through our R&D center. We are establishing global engineering
networks through opening of a Jakarta engineering center last year
and a Houston engineering center this year.
Towards increasing our technological competency, we seek projects
such as enhancement of vessel fuel efficiency and the Boil-Off Rate
savings for LNG vessels. We also focus on cost-efficiency, quality
improvement, supply management, and risk management.
Development and management of technology talent are
fundamental activities to all of these projects. Significant weight
is put on managing core EM personnel, enhancing competency,
providing opportunities for collaborative industrial-academic
research, providing a training program at advanced engineering
institutes, mentoring, and offering positions at DSME to
subcontractor employees who perform well.
Earlier this year, the Technology Division was assigned procurement
responsibilities as part of DSME’s EPCIC goals, allowing us to
look at all cost dimensions and seek synergy through collaborative
systems from sales and design to procurement.
The Technology Division will continue to be the center for
technological competency and innovation for DSME.
2
Real Information
Technological Competitiveness
KEY FOCUS
KEY PERFORMANCES
DSME is on track to becoming an offshore EPCIC specialist through development of several new products, and
reaching new markets.
•S
trengthening capabilities of key design research
organizations
•A
total of 9 best-in-the-world products, including FPSOs
• 18,000 TEU containership, designated as one of Korea’s
10 new technologies
• 9 ships chosen as the “best ships” produced in 2012
DSME runs a central research institute of 400 researchers, with 4 major research areas.
Ship & Ocean R&D Institute Researching and developing infrastructure, design technology and new products
including ship models / structure / fluid / vibration noise / mechatronics and innovative product research
Information Technology Team Responsible for all IT-related tasks and ship/offshore products. Researching
and developing design systems, production systems, IT integration, ICT planning and systems integration
Energy System R&D Team Researching and developing gas technology, offshore plants, subsea technology
and HSEQ required for new business
Industrial Technology Research Institute Researching and developing automation of hull assembly / welding
/ painting; welding techniques / devices / deformation control and calibration techniques; measuring equipment
/ technology / instrumentation; anti-corrosion technology, eco-friendly / energy-reducing research, robotics research
Achievement & Performance in 2012
1) Ship & Ocean R&D Institute
Research on application of DSME Duct, fuel-efficiency devices, standard design for 170K Arctic LNGCs, a 38 meter wide drillship, DSME-developed Semi Rig, DP3 Automated Location Maintenance system, semisubmersible
structure power line interpretation system, NO96 Type CCS (Cargo Containment System), BOR (Boil Off Rate)
reduction technology, high manganese used IMO B type Tank development, research on low vibration for cruise
ships, active top bracing, low temperature-retrieval systems and power generation from ship waste.
2) Information Technology Team
Drilling & well control simulator, operational management systems for ships and offshore plants, model-based
collaborative systems, next generation CAD systems, a comprehensive financial system, and creation of an
environment for smart shipbuilding.
3) Energy System R&D Team
Environmentally-friendly shipbuilding system technology for reduction of VOCs (Volatile Organic Compounds)
and Nox (Nitrogen oxide), LNG and FPSO systems, efficient BOG (Boil Off Gas) reliquefaction device, ACT-IB
Mock-up system, marine nuclear power system, floating gas-complex thermal power generation plant, safety
evaluation and implementation of designs for ocean floor production plants, Riser Engineering, FEED research
on lower structure of wind power generators, exploration of deep sea mineral resources, a seabed production
simulator, and ocean floor foundation design technology.
4) R&D Institute
We are conducting research on shipbuilding and offshore production systems with the ultimate goal of efficiency
and employee safety. To this end, DSME has undertaken such R&D projects as SAW development and application, Small feeder development and applications for wire routing, development of next-generation auto carriages,
ocean joint deck level and draft monitoring system, a welding robot system and extended applications, a robot
for electronic precision welding, and a robot for the Yeosu Expo.
Based on competency of the central R&D center and our research organizations, DSME is working hard to
promote sustainable and strategic research and development of core technologies that will lead the future in
shipbuilding and related industries. With LNG-powered ships embedded with core technologies, the LNG-FPSO,
LNG-FSRU, arctic ships (LNGC, B/C, tankers, drill ships), and cruise ships, DSME is well on its way to becoming a professional EPCIC firm to dominate ocean-related industries by offering new products and entering new
markets.
36 - 37
3
Real Information
38 - 39
Adding V alue
DSME listens to its clients through various channels, and prioritizes customer satisfaction in the whole business
process to provide the best value through products and services that fit client needs.
Our quality philosophy
Quality Philosophy: Key Words
Fulfill promises made
to our customers
before they ask
Independence
Client Loyalty
Remember that
each employee is
responsible for DSME
quality
Pride
Continuously research
ways to improve
product & service
quality
Wansoo Ryu, Vice President, Chief Business Officer
Do it right
the first time
QA/QC Certificates
Remember that we are
producing the world's
best products at
a world-class shipyard
Certification
ISO 9001 QMS CERT
Certificate of Welding
Defense Quality Assurance System Certification
Certification of Accreditation
as a Calibration Laboratory
Certificate of Accreditation
as an International Test Laboratory
Organizations
DNV Certification Registrar
G.L. Classification
Defense Agency for Technology and Quality
Korean Agency for Technology and Standards
Korean Agency for Technology and Standards
Details
Quality management system
certification (vessels, industrial
Welding of vessel structures,
pipeline welding
Vessel design and building (destroyers, patrol
Length of vessel, angles, other length
measurements, torque, pressure, vacuums,
direct currents, impedance, alternate currents
and voltages, low frequency and 51 other
items in 10 categories
Mechanical property test of metal and metal
product/chemical test for metals and alloys
machines, offshore & onshore
structures, design, manufacturing,
buildings, plant installation and services)
(Pipeline system Classes I – III)
boats, escort warships, crane boats, dredging barges,
submarines, submarine rescue ships)
When customers turn their attention away from us, this is the most
serious crisis. To focus on what our customers want, we incorporate
quality management into our business management, thus bringing
us closer to our customers.
As the world economy rapidly changes, there is no guarantee that
today’s top ranked firms will remain so tomorrow. We have often
witnessed the collapse of firms which had previously established
quality supremacy and were in the top position.
We have hosted various meetings with our clients and our people
(including those in our subsidiaries) have undergone training in
quality awareness, showing our dedication to product quality and
customer trust.
DSME is committed to three fundamental principles:
First, we are committed to quality fundamentals. Trust grows
from being faithful to the basics and to principle. Second, we will
do nothing to compromise quality. We hold to the principle that
no product leaves DSME if quality has not been secured. Third,
DSME is oriented to embrace the best quality. We want the owners
of our products to know they can be proud of the world-class
quality of their purchase.
Gaining a new customer is much harder than losing one. With
this in mind, our managers and employees work hard to build
cooperative relationships with our client base.
3
Real Information
Customer Satisfaction
KEY ISSUES & PERFORMANCES
Active communication through various channels means that DSME provides its clients with top quality products and
services that meet their needs. Training allows us to improve every level of quality and innovative technology.
• Optimization of quality management system (QMS)
-A
uthentication and maintenance of ISO9001 QMS and Defense
Quality System, periodic investigation of internal quality
management and assurance system
•R
eal-time monitoring of overall quality control information
through ERP
• Client communications channel
-L
istening to clients (through ship owners, staff, subcontractors)
-C
ustomer requests during construction: e-QISS, PCS
-H
andling of complaints from customers after delivery: e-A/S net
1) Optimization of quality management system
DSME is dedicated to giving our clients top class products and services through an optimized quality management system. DSME has continuously extended its ISO9001 quality management system since initial certification in 1992, through regular monitoring and improvement.
Our real-time quality monitoring system allows gathering of first-hand quality information (including Test Information) as well as all influencing data. Aggregate project information on inspections and quality is systematized to
facilitate sharing with all departments.
2) Client communication channels
Carrying out client quality requirements means that quality management must be top priority. Quality is the barometer measuring the degree of partnership between DSME and its clients.
Clients make requests to DSME through its webpage, in real-time, and according to whether the request is
regarding ongoing construction or after delivery. Requests are dealt with as soon as possible by a coordinator,
until the client is satisfied.
DSME surveyed ship owners, project managers, subcontractor representatives and suppliers in 2012 as part
of our Voice of Clients (VOC) program. Feedback was immediately reflected in production, and action status is
constantly monitored.
In addition, quality agents gain skills through regular seminars, and then pass them on to colleagues in our efforts
to have one quality agent per item of equipment. The individual quality agents are onsite DSME representatives
whose activities maintain the highest quality at every level.
Items
e-QISS
Customer
PCS
2012
QM Quality Recognition training
470 people
Quality Technology seminars
93 seminars
QM Expert Development
38 items of equipment
LINE QC training
1,330 people
Pre-project internal QM training
242 sessions
Pre-project external QM training
90 sessions
QM training at Technology Education Institute
After Delivery
-Q
M personnel: group study, seminars, training to develop QM
expertise
- Maintenance and training of LINE QC
- Quality training before and after projects
- On-the-job training of new recruits
- Training for subcontractor recruits
-T
raining for technicians at DSME’s Technology Education
Institute
3) Quality assurance training
DSME conducts regular quality awareness training for production workers and managers and continuously revises this training to bring the skills of all production workers and managers up to customer expectations. In 2012,
DSME’s quality inspectors underwent additional training that focused on “Back to the Basics”.
Training for new subcontractor and vendor employees
Under Construction
• Training for quality assurance
20,311 people
930 people
e-A/S net
1) Building a quality-oriented corporate culture
“The pursuit of quality will become a corporate culture.” – DSME CEO, Jaeho Ko
Several different quality campaigns are in the works to keep quality in the minds of our employees, such as a
contest to find a good quality slogan and a photo exhibition.
2) Proactive communication
DSME believes that anticipating and addressing customer requests before they come are the best ways we can
serve. Quality presentations, on-site customer visits and otherwise listening to our clients are important parts of
our plans in 2013. Feedback from these communications will be reflected immediately in production, and utilized
to improve quality.
3) Quality Management Training
DSME is seeking creative ways to train new hires online and increase quality awareness of all employees to
maintain top quality of our products. This level of quality is maintained through strict annual inspections of our
quality management system.
40 - 41
4
Building
Real Information
42 - 43
UP Tomorrow
If we do not to take people and the environment into account, growth is meaningless and ultimately unsus
tainable. DSME works constantly to identify HSE issues and solutions through systematic, professional health,
safety, and environmental management.
Waste Management & Recycling
HSE Manpower (334 personnel)
Recycling year: Tons
General affairs (1)
2010
VOC Emissions
(Unit: tons)
116,187
Planned emissions limit for 2012
8,328
Actual emissions in 2012
2012
Administration
(82)
“H” Health (29)
98,016
First agreement period (2007 ~ 2011) average
annual emissions amounted to
8,767
“E” Environment (44)
2011
106,660
Healthcare (16)
Total waste (tons)
2010
156,286
“S” Safety (260)
Technicians (236)
2011
151,220
2012
146,653
7,110
▶ DSME realized a 19% reduction
beyond its original target for the
first agreement period.
2012: 433,239 tCO2eq
2013 target: 509,733 tCO2eq
Management
of Greenhouse
Emissions
HSE person manages
91
DSME employees
(based on 29,644 DSME and subcontractor employees
- Including HSE support, one HSE person manages 61 people
19
Legally-appointed safety & healthcare managers
- 6 DSME safety managers
- 5 DSME health care managers
- 8 Subcontractor safety managers
HSE commendations from government and other agencies
▶ February 2012 ISO50001 certified
▶ June 2012 Awarded appreciation plaque by KOSHA Chairman
▶ June 2012 Commendation from governor of South Gyeongsang
Province for blood donations
▶ August 2012 Granted “AAA rating” in sustainability by Eco-Frontier
HSE Recognition from major client
▶ October 2012 Granted top spot in “Green Ranking” in Machinery and
Shipbuilding by Joongang Daily Newspaper
▶ November 2012 Received “Excellent” award from the Ministry of
Public Administration & Security for our exemplary safety culture
▶ December 2012 Declared again an “Excellent Institution” for “Green
Wheel”
▶ October 2012 Contractor Safety Award from ENL (ExxonMobil-Neftegas)
(two consecutive years)
Donghyuk Park, Chief Production Officer
“I believe that HSE is fundamental to guaranteeing health,
life and happiness for our managers and employees.”
With this in mind, DSME works untiringly towards a strong HSE
organizational culture.
Our primary objective is to prevent serious accidents in our
workplace that come as a result of poor habits and moments of
carelessness. Such accidents separate people from their families
forever, or at least irreversibly change lives. We are working hard
to create a safe organizational culture and habits so people will
recognize that safety is our most valued priority.
To prevent injuries and chemical leaks from carelessness, we
continuously look for hazards onsite and make exhaustive
preparations to improve our working environments. Through
mindset changes and other initiatives, we practice HSE daily as we
make our shipyard the safest, healthiest, and cleanest in the world.
Thus, management is becoming more HSE-oriented and leading
DSME to become an organization that impresses all of our people,
including me.
4
Real Information
HSE Management
DSME recognizes HSE as an important area offering opportunity for sustainable corporate growth.
44 - 45
KEY ISSUES
KEY PERFORMANCES
•H
SE policy: Create a safe and healthy workplace
•P
roduction management HSE policy: “A workplace with a
level of safety that impresses clients and me.”
•2
013 goals: ‘ZERO’ serious accidents, advance preparation
and strengthening of HSE
•A
ccident rate: 0.15%
•H
SE safety mileage awards: KRW 1.68 billion (*from a budget
of KRW 2 billion, the largest in the nation)
•G
reen Management System (GMS) Certification
HSE Management
Environment
DSME’s specialized HSE management system effectively handles activities related to safety, health and the
environment. HSE personnel are also deployed onsite to ensure implementation of HSE standards on each
project.
DSME endeavors to protect the environment in all business activities to improve future prospects and increase
the standard of living.
We, the management and staff of DSME, value, respect and care for every person and stakeholder and all our
HSE activities will continuously serve and promote these core values.
Environment Vision & Strategy
DSME vision in HSE management is “DSME - The Eco-friendly Global Leader”. The company realizes its longterm goals in phases by focusing on these strategies: a pollution-free workplace, green management of its global
operations, and eco-friendly competitiveness.
We shall...
Long-term Eco-Friendly Vision
DSME HSE Credo
• The Golden Rule of HSE: Never, under any circumstance, compromise any HSE standards.
• Incident Prevention: Proactively take accident prevention measures by identifying hazards and risks and immediately eliminate or mitigate any dangerous elements.
• Health Management: Continuously strive to improve the work environment, create an incident & injury free
workplace, and enhance the quality of life and health of every person.
• Environmental Care: Proactively engage in environmental care activities to create a pollution-free eco-friendly
shipyard.
• Individual Commitment: Each conduct ourselves in a manner consistent with our HSE principles and standards.
Vision
DSME – The Eco-friendly Global Leader
Pollution-free workplace
•ISO14001 Certification
•Cutting greenhouse gases &
saving energy
•Recycling of resources
•Enhancement of "green"
partnerships with subcontractors
•ISO50001 Certification
HSE Organization
CEO
Chief Production Officer
PhaseⅠ
“Green” Infrastructure
•Subcontractor Safety
Committee
•Group Safety & Health
Committee
Environmental
Management
Group
HSE Operation Team
HSE
Coordination
Group
Health
Management
Group
Eco-friendly competitiveness
•Eco-friendly designs, procurement
and production
•Expansion of business in wind
power and other renewable
energies
Long-term Eco-Friendly Management Goals
2011 - 2013
•Industrial Safety & Health
Committee
Green management of
global operations
Safety
Operation
Group
Production
HSE
Planning
Group
Production
HSE Group
Production
Team HSE
Groups
• Building a “green” management
system
• Observance of legal
environmental regulations
• Zero environmental accidents
• Increase recycling of resources
• Training & awards
2014~2017
Phase Ⅱ
Optimizing Eco-friendly
Management
• Greenhouse gas & energy
management throughout all
processes
•Introduction of energy efficient
equipment & facilities
•Implementation of emissionstrading system
•Build an eco-friendly zone near
workplaces
•Increase effectiveness of
environmental technicians
2020
Phase Ⅲ
Eco-friendly Heavy Industry
Group
• Introduction of CO2 emission
reduction program
• Increase use of renewable energy
• Increase production of ecofriendly vessels
• Eco-minded management of
subsidiaries
Real Information
Environmental Risk Management (Environmental Monitoring)
DSME has set its environmental pollution levels below legal requirements, strengthened its pollution prevention
activities, and now issues formal written requests for countermeasures to prevent recurrence when an incident
occurs. In addition, according to the company’s environmental management program, DSME investigates the
influence of working processes to minimize environmental damage onsite and in neighboring areas and manage
environmental hazards as they appear.
Results of environmental monitoring within the yard and its environs (2012)
• Air quality (presence of PM, SO2, NO2, CO, O3): Content in the air around the yard was below legal requirements.
• Volatile Organic Compounds (19 items): low concentration of VOC’s around the workplace compared to indoor
air quality in non-manufacturing industries. Benzene too fell within the standards set by the Ministry of Environment. As the patterns of air quality during tests are different between our painting facilities and the neighboring
area, so we have determined the surrounding areas are not affected by the painting facilities.
• Contaminated soil: Cd, As, CN, Cr6+, and Hg not detected. Levels of Cu, F, Ni, Pb and Zn were within legal
limits.
46 - 47
• Voluntary greenhouse gas inventory
In 2010, DSME was the first in the shipbuilding industry to build an in-house greenhouse gas inventory according
to international guidelines based on ISO14064, IPCC Guidelines, and WRI / WBCSD GHG Protocol. DSME’s
methods of calculation and results of GHG emissions were third-party verified every year between 2008 and
2012.
• Response to GHG Energy Target Management
DSME became subject to the government GHG Energy Target Management in 2011. We completed verification
after finishing the GHG Emissions statement for 2007-2011. DSME now systematically measures GHG
emissions as well as reduction targets to aid in gradual reduction of GHG emissions.
Despite the increase in high value-added drill ships and offshore plants in 2012, greenhouse gas emissions
(433,239 tCO2eq) and energy usage (7,421 TJ) decreased over 2011. This can be attributed to our efforts to build
an eco-friendly workplace through introduction of high-efficiency lighting, management of peak electricity use and
implementing EMS activities for energy efficiency.
• Greenhouse Gas Emissions in 2012
Prevention of environmental accidents &
countermeasures
Observance of legal standards & environmental
goal setting
•Daily inspections of work areas
•Measurements & reports on unacceptable environmental
conditions, and follow-up countermeasures
•Written requests issued for correction
•Maintaining standards on emissions into air, water, soil
•Maintaining standards on harmful chemical emissions
•Analysis & measurement by DSME's R&D Institute
•Target: 30% below legal standars
Emission Activities
Okpo Yard
Environmental management program
Environmental management of environs
•Investigation into environmental pollution in every work
process
•Plans for reducing environmental pollution
•Training on environmental protection
•Inspection by external organizations
•Measurement & evaluation of air, water & marine
environment management in surrounding areas
Gathering /
monitoring
results & feedback
1) United Nations Framework Convention on Climate Change
• Master plan for responding to climate change
DSME was designated as a company for greenhouse gas and energy management to comply with government’s Framework Act on Low Carbon, Green Growth. DSME is carrying out a gradual reduction of greenhouse gas emissions as part of the master plan established by the United Nations Framework Convention on
Climate Change.
2007-2009
PhaseⅠ
Built foundation for
management of greenhouse
gas emissions
2010-2013
Phase Ⅱ
2014-2016
Phase Ⅲ
Response on target
management/
Reduction of greenhouse gas
emissions
Advanced response to UN
Framework Convention on
Climate Change / Execution
of emissions trading scheme
Established management of
greenhouse gas emissions
Set programs and goals to reduce
Goal to meet reduction target for
- Configured climate taskforce in
shipbuilding sector
- Built voluntary greenhouse gas
inventory
- Development of greenhouse gas &
energy management system
- Carried out greenhouse gas reduction
project
- Greenhouse Gas Statement /
participation in Carbon Disclosure
Program (CDP)
- Stay within emissions allowance
- Implement clean projects related to
climate change
- Carry out emissions trading scheme
Total Energy Use(TJ)
Electricity
231,014
4,757
Gas burning
11,367
195
Liquid burning
15,872
231
Transportation (road)
18,628
265
Transportation (ship)
133,470
1,864
Other
17,153
Seoul Head Office
2,534
50
Okpo Apartments
2,376
42
Visitors’ Quarters
825
17
433,239
7,421
Total
Total Emissions(tCO2eq)
• Emissions Trading & Participation in Carbon Disclosure Program (CDP)
The Emissions Trading Scheme to be conducted by the Ministry of Knowledge Economy will start in 2015. DSME
participated in the first and second emissions trading project to devise the best ways to engage in emissions
trading. In addition, DSME as an eco-friendly company actively honors its commitments to low GHG emissions,
energy consumption, and response strategies, such as the Carbon Disclosure Program (CDP).
• Greenhouse Gas & Reduction of Energy Use
About 40% of electricity and approximately 700 tons of CO2 greenhouse gas emissions per year have been
reduced through research and development on cleaning with air injection nozzles. Internally developed cooling
vests, with the Vortex Tube Cooler, are distributed to production workers and are ideal for efficient, low-cost
cooling of individual personnel during the summer. They can reduce 43% of the air consumption used on the
yard, resulting in a reduction of CO2 emissions by approximately 6,500 tons per year.
In each production line, there has been an active movement to reduce greenhouse gases through enhancement
activities. DSME reduces energy by paint drying with air circulation ventilators, increasing the use of automatic
blasting equipment, minimizing unnecessary equipment operation and utilizing engine room vacuum cleaners, as
well as encouraging the use of bicycles to get around the yard.
DSME also reduces CO2 emissions by 80 tons every year by shortening test durations through concentration of
similar tests, minimizing the operation of heaters and generators.
Real Information
• Greenhouse Gas Energy Management System (GEMS)
In March 2012, DSME developed GEMS, a program which allows it to manage, in real time, GHG emissions,
facilitate response to greenhouse gas regulations and otherwise optimize management of greenhouse gases.
DSME engages in energy-saving through control of utilities and energy consumption, reports on its performance
in the past, and makes plans on what it will do in the future.
2) Reducing costs through recycling
KRW 3.42 billion has been saved through recycling. This is 162% of the original 2012 target.
(Unit: KRW 1 Million)
Recycled
Plastic &
Batteries
Recycled
Water
125.7
5.9
179
2,200
822.5
180
7.5
180
2,110
2,044.5
1,083
126.9
38.4
129
3,420
222.2
131.7
70.5
511.8
71.8
Average 162%
Recycled
Wire
Recycled
Materials
2011 (actual)
903
990.6
2012 (target)
920
2012 (actual)
Actual as % of target
Recycled Oil
Total
3) Secondary voluntary VOC reduction agreement
Because large shipbuilding painting facilities are not considered to be emissions-producing, a voluntary agreement for consistently reducing volatile organic compounds (VOC’s) is necessary.
DSME signed the 1st agreement for VOC reduction with the Ministry of Environment in 2007 and has decreased
emissions to 8,767 tons for the 5 years to the end of 2011, which is 3.2% lower than the objective, but equals a
34.9% reduction in total shipbuilding emissions. In 2012, actual emissions (7,110 tons) were 19% lower than the
original target (8,328 tons). With the 2nd agreement signed in 2011 but in effect between 2012 and 2016, DSME
is reducing its emissions to 13% less than the 2011 actual emissions (8,767 tons).
DSME has invested 5.89 billion KRW in consistently reducing VOC’s, through development of eco-friendly paint,
reduction of paint used and wasted, employee training and process optimization.
VOC Emissions
Invested amounts
(Unit: tons)
Measurement (KRW billion)
2007-2011 Average
8,767
8,328
7,110
Actual Discharge
Planned Discharge
17.36
15.64 15.6
8,151 7,976
7,801 7,625
7.97
6.32
2012
2013
2014
2015
2016
2007
5.89
2008
2009
2010
2011
2012
4) Air quality management
In order to minimize the emission of air pollutants during working processes, DSME operates 89 items of air
pollution prevention equipment at over 99% efficiency. In 2010, DSME began using low-sulfur fuel, which does
not emit SOx, as refrigerant. DSME utilizes alternative substances which do not deplete the ozone layer. In 2012,
approximately 22.6 tons of dust was discharged. DSME sets its own standards 30% better than the legal requirements to further minimize emissions. In accordance with Article 35 of the Clean Air Conservation Act (emission
fines), DSME reports its emission of air-pollutants to the South Gyeongsang provincial government.
5) Water quality management
Wastewater produced during working processes is treated at a treatment plant on the yard. Cleanup is 30%
better than legal requirements, and a combination of biological and chemical methods are used. Treated water is
reused for ballast within the yard.
6) Soil management
There are 50 fuel storage tanks on the yard, and DSME conducts regular and detailed inspections of the soil
nearby, as well as groundwater. Soil contamination is regularly measured by an inspection agency designated by
the Ministry of Environment, which gave “Acceptable” ratings for the 2 inspections last year.
7) Introduction of a chemical substance management system
DSME has built a computerized information registration system for chemical management, keeping MSDS (Material Safety Data Sheets) mistakes or omissions to a minimum and allowing for safe use and storage.
8) Cell phone donation campaign
DSME collected 154 used cell phones from May to November last year, with all proceeds from their recycling and
sale donated to the Korean Salvation Army.
48 - 49
Real Information
9) Environmental evaluation and accounting
• Environmental Performance Index
Performance Index
Category
EMI
(100)
MPI
(50)
• Environmental Accounting
Classification
EMS Index
(20)
ES Conformity
Index(5)
EAI
(5)
Resource Use
Index(6)
Hazardous
Substance Use
Index(4)
Waste
Discharge
Index(15)
Air Quality
Index(4)
Sea Water
Quality(3)
*Legend
EMI: Environmental Management Index
MPI: Management Performance Index
OPI: Operation Performance Index
EPI: Environment Performance Index
EMS: Environmental Management System Index
ES: Environmental Standards
EAI: Environmental Accounting Index
Soil quality
(3)
Detailed Items
1.Suitability of EMS plan
3.0
3.0
2.4
3.0
2. Implementation Rate/schedule
6.0
6.0
4.8
6.0
3. Satisfactory level of implementation
6.0
6.0
4.8
6.0
4. Regular management
5.0
4.0
4.0
5.0
1. Violation of regulations
3.0
2.4
1.8
1.8
2. Fines
2.0
0.8
0.0
0.0
4. R&D (process / product improvement)
1. Environmental expenditures
3.0
0.0
0.5
1.5
2. Environmental benefits
2.0
0.0
0.0
0.0
5. P
rotection of the global environment
(global warming / ozone layer)
10.0
20.0
20.0
20.0
2. Environmental cleanups
5.0
2.0
10.0
10.0
1. Information communicated with residents (Onsite visitors)
1.5
1.2
3.0
1.2
2. Frequency of contact with stakeholders (Environment-related)
1.5
1.2
2.2
2.5
2
4.0
2.8
2.4
•Steel
1.5
2.4
3.0
2.4
•Paint
1.5
2.1
2.1
2.4
2. Water
1.5
2.7
2.7
2.4
3. Energy
1.5
3.0
2.7
2.7
1. Toxic chemicals
4.0
8.0
8.0
8.0
1. Waste generation volume (basic unit)
4.0
8.0
8.0
8.0
2. Recycling rate
4.0
8.0
4.8
2.6
3. Water recycling rate
4.0
1.6
0.0
0.0
3. Community landscaping
4. Waste separation efficacy rate
3.0
4.8
6.0
6.0
1. Savings from prevention activities
1. Requests to improve environmental incongruencies
1. Major raw materials
1. Air pollutant emissions
•Total dust (discharge facility)
3.0
6.0
3.6
4.2
•Total SOx emission (discharge faility)
3.0
1.2
6.0
6.0
•Total COD emissions (waste water)
3.0
0.0
1.2
0.0
•Total BOD emissions (waste water)
3.0
0.0
5.4
0.6
•Total SS emissions (waste water)
3.0
0.0
0.6
5.4
•Concentration of PM10
1.5
1.5
2.1
1.2
•Concentration of SOx
1.0
1.0
2.0
2.0
•Concentration of ozone
1.5
1.5
2.4
0.0
•Concentration of COD
1.5
3.0
2.7
3.0
•Concentration of DO
1.5
1.8
0.6
0.3
•Concentration of BTEX
1.5
3.0
3.0
3.0
•Concentration of TPH
1.5
2.4
0.0
0.0
100.0
112.6
123.2
119.6
2. Water pollutant emissions
EPI
(10)
Amount
2012
1. Surrounding air quality
1. Surrounding sea water quality
1. Soil quality
Total
1. Environmental management system
activities (auditing / labor costs of supporting
departments)
2. E
ducation & Training (Environment-related internal/
external education)
Preparations
against Pollution
6,214,259
3. Energy / Resource saving
(Reduction /Recycling activities)
6. Landscaping
Protection
from pollution
29,557,642
and cleanup
activities
14,600,910
87,146
548,681
44,124
5,994
5,610,000
5,460
0
1. Investment in environmental improvement
2. O
peration of pollution prevention facilities (Depreciation/ maintenance/ repairs/ staffing/ power etc.)
7,368,884
3. Costs of environmental measurements
(internal/ outsourced/ automated)
4. D
isposal of production waste
(outsourced disposal/management)
Environmental
risk
management
Amount
1,419,864
379,143
5,433,019
1. Environmental pollution prevention / Restoration
74,390
2. Environmental dues/ penalties/ fines
12,011
3. Legal compliance and management of information
1. Environmental reporting/Annual Report
745
40,500
2. Social contribution
Social
contribution
costs
Expenses for
Environmental
Impact
Air/Water
Pollutant Emission
Index(15)
(Unit: 1000 KRW)
Activities
2011
3. Environment-related civil complaints
OPI
(40)
Amount
2010
Environmental Costs
Stakeholder
Index(5)
Item Cost Type
Baseline year
Expenses for Environment
Environmental
Activity
Index(15)
Details of assessment
50 - 51
Savings from
3,753,616 environmental
activities
8,655,327
3,753,616
- Donations and assistance for environmental groups
-E
nvironmental preservation (community/ environmental services)
- Regional collaboration
- reducing paint waste
- recycling waste water
2. Increased revenue from recycling
- waste oil and paper
8,614,827
0
3,499,904
253,712
Real Information
Safety
DSME conducts monthly, quarterly, and semiannual evaluations on HSE management performance by team and
communicates the need for safety awareness to its workforce through various activities including management
messages on safety, weekly safety campaigns during the morning commute, creation of individual safety statements, UCC contests and the HSE Golden Bell. As a result of those activities and for the first time since the Safety Mileage program was introduced, 1,000 days of zero accidents were achieved by one group last December.
The company-wide accident rate also decreased by 35% over 2011. Third-party audits of our HSE management
system showed 4 cases of non-compliance with requirements in the first half of 2012, which decreased to 0
cases in the second half. Areas in which DSME is performing well, increased from 5 to 11 in the same period.
1) Strengthening HSE awareness programs
• Expansion of IIF (Incident & Injury Free) Education to all employees (executives, managers and supervisors, new hires)
• “Second Chance at Life” program (174 persons since July 2012)
• Safety training for onsite supervisors (2,540 persons)
• Safety training for management, team leaders and subcontractor representatives (450 persons/quarter)
• Refresher training and seminar for IIF instructors (February: 84 persons)
• Safety training for foreign employees (2012 total: 1200 persons)
2) Improved accessibility of HSE education for foreign personnel
• DSME has produced and distributed 27 videos on HSE, and distributed guidebooks for foreign employees
from 6 countries: Vietnam, Uzbekistan, Nepal, Thailand, Myanmar and Sri Lanka.
3) Strengthening HSE coordination activities
• HSE Coordination activities: regular safety inspections and meetings for each project
• Integrated HSE Workshop Team (IHWT): bi-monthly safety inspections and meetings
• Monthly safety campaigns with client participation
Healthcare
A To-Be Process Map for healthcare has been established with the health of our workforce and their families in
mind. DSME has an onsite center for healthcare management against cardiovascular disease and other illnesses,
which includes off-site subcontractor employees living in company housing. Employees (and their spouses over
35 years of age) also receive medical check-ups at least every two years.
To-Be Process Map for Health Management
Managing system through KPI (managing PDCA cycle)
Health measurement
database
P
Database for follow-up
management
Health center
database
Management of
medical results
D
Evaluation
of
individual
health
C
A
Management of current
work and lifestyle
Health promotion program
DSME, in cooperation with local agencies, conducts various campaigns aiming to improve the health of
our employees and management. These campaigns include emphasis on being smoke-free, moderation in
alcohol, nutrition, obesity, cardiovascular disease, and overall health.
Supporting Agencies
Master health promotion program
Onsite Clinics
Geoje Healthcare Center
Program planning
West Gate Health &
Fitness Center
Gyeongnam Red Cross
Program operation
Smoke-free
Smoke-free
Program
(Onsite clinic/Geoje
Public Healthcare
Center)
4) Annual HSE forum
• DSME’s HSE Forum is a time to share HSE Best Practices with Korean and international clients, DSME
employees, industry HSE representatives and DSME’s partners.
52 - 53
Moderation
in alcohol
Nutrition
Avoiding
Obesity
Alcohol
moderation
program
Nutrition clinic
Physical exercise
(Onsite clinic)
(Onsite clinic)
(West Gate
Fitness Center)
Cardiovascular
health
Cardiovascular
disease
prevention
(Onsite clinics)
General health
campaign
Social
Contribution
Health promotion
Blood donation
(Geoje Public
Healthcare Center)
(Gyeongnam
Red Cross)
HSE Prospects and Objectives
Recent news of industrial chemical spills and explosions in different countries has increased awareness of the
need for HSE and our clients consider satisfactory HSE performance as a bidding prerequisite. In addition, the
increase in new-concept vessels and projects brings job site changes and additional safety issues, such as those
connected with an increased number of confined spaces and work at height situations. DSME is working to increase awareness about accident-free possibilities and overall safety management across the company, through
the following programs:
- Giving more responsibility and authority to the production divisions to develop an HSE-aware workforce
- Our safety incentive program (“Safety Mileage”), which has been running for 3 years now
- A continuously improving risk assessment system
- Chemical safety management system
- DSHC (DSME Smile Health-Care) since 2010 to provide an optimal working environment and put priority on
employee healthcare
- Improving healthcare facilities and services infrastructure.
DSME is committed to raising the bar of safety among its own employees, working with its subcontractors in
implementing their approved HSE plans, and with families and the community to enhance HSE communication
outside the company.
5
Real Information
54 - 55
G row T ogether
The competitiveness of our business partners plays an important role in sustainable business success. DSME
is in the process of building a system of mutual development through mutual competitiveness and sustainable
cooperative relations with our partners.
Strategy map for accompanied growth
Strategy & Business
Planning Team
Financing support for partners
KRW
80
Training
Win-Win Growth
Group
Planning
•Programs & guidelines on plans for
mutual growth & “fair trade”
•Agreement with partner companies
•Government relations
•Monitoring agreement observance
billion
35,000
partner employees
Supporting
Organizations
Production
계약담당
Procurement
•Purchasing
•Subcontractor planning
•Pre-Production
Subcontractor Operations
•Design
Training
•HR development
•Engineer Training
Center
•HSE planning
Technology
•Tech. planning
•IT planning
Finance
•Treasury
•Accounting
Grand Prize in the manufacturing section of Korea SCM
(Supply Chain Management)
4 types of guidelines for establishing fair and transparent subcontract transactions
Agreement guidelines for
cooperation between major
enterprises and SMEs
Guidelines for selecting
and handling cooperating
companies
Guidelines for establishment
of internal audit committees
for subcontractors
Guidelines for issuing
transactions in writing
and record-keeping
DSME won the Grand Prize in the 11th Korea SCM held on November 19,
2012, and was designated as an “excellent enterprise” in supply chain
management.
DSME received this award for improvements to its supply chain management,
such as improvements to information accuracy for confirmation of our supply
chain for outfitting materials (pipes, steel outfitting) which can seriously
affect production, management method, subcontractor supply cluster,
and establishment of an organization dedicated to central control of supply
management. DSME has also received top marks for its system of handling
unexpected interruptions in supply to ensure the supply chain is not broken.
Youngryul Ko, Vice-President, Strategy & Business Planning Office
“Through trust-building efforts, DSME aims to continually
improve management-labor relations and mutual growth
with our subcontractors, while actively engaging in economic
democratization to meet the needs of the times.”
We will establish independent and accountable managerial systems and
focus on maximizing group value in our subsidiary operations. And in
response to the government’s push for economic democratization, we
will proactively seek mutual growth with our subcontractors.
DSME has signed a declaration of mutual growth with our affiliated
companies, something that aims at mutual respect and success between
all co-signing companies involved with DSME. Presently, DSME is also
increasing financial and technological aid to suppliers of our subsidiaries,
through fundraising and technology transfers.
Besides developing new technologies, we are also expanding our
mutual growth funding and introducing four major guidelines to fulfill
the agreement we made with the firms. In spite of a challenging
environment to putting these plans into place, we are committed to doing
our part as an engine for creating a mutually-beneficial corporate ecology.
Our subcontractors are an important part of our journey to becoming a
world-class EPCIC firm. Along with management-labor cooperation, this
mutual growth will build trust and lead to active engagement in economic
democratization.
5
Growing Together
With an agreement for fair trade and mutual growth with our suppliers, DSME is actively engaged in spreading an
organizational culture of “win-win” between SMEs and large enterprises such as our own.
Real Information
KEY FOCUS
KEY PERFORMANCES
•C
reating permanency to an organizational culture of mutual
respect between suppliers and other local companies
• Enhancing competitiveness of suppliers
•R
eceived an assessment of “Good” in co-development
index evaluation
•C
ontributing to financial soundness of our
subcontractors
•E
nhancing competitiveness through technology and
personnel management
1) Financial Support to Subcontractors
DSME began fundraising for mutual growth in June 2011, and has provided actual financial assistance to subcontractors. Payments are cash-only and on a more frequent basis, further aiding subcontractor financial health.
We also provide aid in the form of urgent funds for capital investment in facilities, and together with the Korean
Export-Import Bank, have introduced a new program that provides low-interest loans for exporting SMEs.
1) Financial Support for Subcontractors
KRW 80 billion to be provided to suppliers via the mutual growth fund and mutual success guarantee programs.
2) Technology Support for Subcontractors
We have long operated indirect assistance programs like technology transfers and patent registration, and have
sought comprehensive mutual growth plans including our Management Doctor policy supporting subcontractor
innovation, dispatching tech professionals to subcontractors, and protection against technology leaks.
3) Training for Subcontractor Managers & Employees
Besides personnel management and management training, we provide foreign employees working for subcontractors with opportunities to learn Korean and visit cultural places to acquaint them with Korean culture, helping
to avoid cultural misunderstanding and facilitating closer working relationships.
4) Other Assistance
Our excellent subcontractors regularly receive bonuses and awards, and guidebooks have been distributed that
introduce updates to the mutual growth program and the types of assistance available.
5) Agreement Between Subcontractors & Subsidiaries
As an extension of the mutual growth agreement between primary and secondary subcontractors in September
2012, we gathered subcontractor representatives to explain the aid program available to them, after which 91 primary and 319 secondary subcontractors signed an agreement for mutual growth. Previous to this, in June 2012,
we held a similar meeting with our subsidiaries, involving ourselves in mutual growth activities.
2) Technology Aid to Subcontractors
A program of sharing patented technology (scheduled to be expanded) includes collaborative R&D for tools and
materials, expansion into overseas markets through collaborative technological development, temporary tech
transfers, patent support, and a program to protect subcontractor technology.
3) Assistance in Education, Training, & Staffing
•T
raining on managerial practices to subcontractor managers and employees
•T
raining on quality and safety issues
• Support for cyber education package for subcontractor employees and their children
•S
upport for subcontractor technical professionals and staffing activities
•V
isits to subcontractors and guidance for HSE activities
4) Other Support
• Awarding subcontractor excellence in the fields of safety, quality, and design
• Collecting and converging opinions from suppliers (hosting subcontractor representative meetings to
facilitate information sharing between subcontractors and hearing requests)
56 - 57
6
Lifting
Real Information
58 - 59
UP People
People are the key to sustainable corporate performance. Based on this belief, DSME carries out a number of
personnel development policies and strives to enhance the health of all employees. In 2012, DSME’s volunteer
corps actively participated in creating a better society.
Current workforce
By gender
Male
Personnel development in 2012
Total trainees
Total hours
33,352
578,867
13
Female
12,049
642
By region
886
Seoul
11,662
Okpo
Annual training hours
for each job type
Overseas
143
(Unit: hrs/person)
By employment type
Regular
12,398
293
Temporary
“Creating a DSME that values development of EPCIC
professionals, labor-management coexistence, advanced welfare,
and a communicative organizational culture.”
By positiontype
Executives
63
5,235
Office Workers
7,100
Production
Other
DSME social contribution system
Establishment of social
contribution infrastructure
social contribution calendar, individual
management, social contribution
fund
Volunteer activities in
the community (by staff)
Nationwide social
contributions
Global social contributions
Chulsang Lee, Vice President, Human Resources Support
293
As we view our employees as fundamental to becoming a world-class
EPCIC firm, the HR department encourages employee-friendly policies
and practices. In prioritizing hiring, retaining, and developing skilled
personnel, the HR department offers diversified staffing channels for
technological professionals, educational opportunities, and preferential
treatment of those with technological skills, with an established reward
system.
To actualize labor-management coexistence, we include staff hired from
outside sources who can identify HR problems on the yard, which helps
DSME manage its workforce more effectively.
By 2014, DSME will have a developed welfare system that provides
flexibility and suitability for the increasing number of employees working
for offshore-related jobs.
And, as part of our fulfillment of our corporate social responsibility,
we have our people engage in activities together with the community.
Each unit of the HR Department has “sisterhood ties” to areas of our
community, providing service activities to 20 communities. Our joint
Company-Labor Union community project, “Love my Neighborhood”,
involves DSME personnel engaging in a service activity each month.
6
Real Information
Organizational Culture
To secure a sustainable foundation for future opportunities, we put great attention and investment into employee
education, and improving productivity and employee working conditions.
“Joy in sharing and togetherness.” DSME recognizes that contributing to the community is part of our corporate
responsibilities.
KEY GOALS
KEY PERFORMANCES
•E
PCIC, DSME MBA and leadership competency for talented
individuals
• Improvement to fundamental competencies such as planning
and negotiating, and global business communication
• Communication between organizations and positions
•E
stablishment of an employee welfare system suited to real
needs (and specifically for our production personnel)
•“
Joy in sharing and togetherness”
• Implementing “Love my Neighborhood” project
Management of Personnel
Employee Benefits
Housing
DSME provides its managers and employees with opportunities in management training, language learning,
domestic and overseas studies, and cyber education. We also offer retirees, our subsidiaries and subcontractors,
and the families of managers and employees with individual career development. As professional competency
has recently been emphasized, we are developing better professionals in Project Management (PM), Engineering Management (EM), and Material Management (MM) through provision of opportunities for quality education.
DSME apartment complexes accommodate approximately 2,400 households and our 2,500-room dormitories
offer gyms, laundry rooms, cafeterias, and internet cafes. Employees also have access to low-interest housing
loans.
Education
A kindergarten, elementary, middle, and high school offer quality education, and assistance is given with tuition
from kindergarten to college. Cyber education is offered to our subsidiaries, and their employees and families. In
2008, DSME acquired Koje College to produce graduates for the shipbuilding industry, and participate in research
and development.
DSME HR Division
Medical
HR
Division
HR
Infrastructure
·Global system of employee development
·Development of business strategies and
cooperative labor-management relations
·Effective Human Resource Management (HRM)
HR
Division
Targets
We run internal medical clinics and a health education center, and have close ties to a local general hospital
equipped with specialized medical department. These facilities make it possible to assist in regular medical checkups and assistance with costs associated with surgery and hospitalization.
Internal Health & Welfare facilities
DSME operates physical therapy rooms, fitness rooms, counseling, gymnasiums, public baths, and laundry
rooms.
HR division for a world-class
EPCIC shipbuilding /
offshore specialist
·Global Leadership
·Corporate strength through individual
improvement
·Internalization of DSME’s core values
*EPCIC: Engineering, Procurement, Construction, Installation, Commissioning
Employee Insurance Coverage
DSME offers insurance coverage for industrial injuries or illness, and subsidizes personal insurance for non-work
related injuries and illness. Payments into personal pension plans for employees are also subsidized.
Resort facilities
For rest and recharge, employees can take advantage of our memberships at 50 different resort spots.
Support for family events
Employees with DSME and our subcontractors are eligible for financial assistance with family events. These
benefits include moving house, 60th birthday celebrations for parents, and birth of a child.
Cultural life and leisure
Skills training at DSME promotes competency in managers and employees, enhances individual growth, and
develops the overall corporate competency needed to implement our strategies successfully. This training supports DSME’s vision to become a professional EPCIC firm in the field of shipbuilding and offshore production.
We host various cultural events including concerts, plays, lectures, and exhibitions, and support approximately
300 internal sports and hobby clubs.
60 - 61
Real Information
Prospects & Objectives
If a welfare system does not address physiological needs, it would be wasteful to aim to provide for self-actualization needs. In order to cope with the existing production environment, we need mid- and long-term welfare
benefit systems that are not overly-focused on saving money, nor wasteful, but are a response to employee need
surveys. Regular employee feedback allows us to adjust our benefits and welfare system.
We are establishing a comprehensive and reliable system of benefits that will be at the top of the industry, and
adapted to meet our situation, rather than simply copied from other nations.
Community Contribution Organization
DSME Volunteer Corps
Since DSME set up a social service group in 1993, employees have engaged in various social activities including assistance for people living in poor environments, environmental cleanup activities, supporting community
welfare facilities, and building/renovating homes. Service groups include Sae-sak Sori Committee, the True Love
Welfare Committee, the Technology Sharing Committee, Hope Community Service and the Underwater Service
Club. In May 2003, we integrated our service groups into a single unit to promote a systematic response to the
need for service activities. This new unit is known as the DSME Volunteer Corps, and captures the synergy from
working together and yet retaining each group’s individual features.
3) Education Information
In a region lacking sufficient information on the education system, DSME answers questions from parents regarding the college entrance system and seeks to motivate students to study. This is very popular for parents in
the community.
4) International Day
DSME and its subcontractors host an annual International Day for foreign employees. The event aims at increasing understanding of Korea, and bringing together coworkers from the same nations. Sports events were
planned for the first year, with teams divided by nations, and in 2012, the focus was on the history of Korea. Ten
different nations are represented by the approximately 1,000 foreign employees who attend.
5) Blood Donations
As part of our social contribution activities, DSME has organized a quarterly blood donation campaign since 2009
with the Korean Red Cross. By 2012, approximately 6,100 employees have participated, donating a total of
2,452,000 CCs. Participants donate their received blood certificates, with 1,700 certificates used to help coworkers and neighbors in need. In recognition of these ongoing donations, DSME was awarded as an “Excellent
Institution” for blood donation by the governor of South Gyeongsang Province in June 2012.
6) UNICEF Cards
Since 2002, DSME employees have purchased 95,000 cards issued by UNICEF, a UN organization focused on
helping children. These cards are sent to children across the world.
DSME Voluntary Activity Organizational Chart
7) Assistance for senior citizens who fought as students during the Korean War, and now live alone
DSME has forged enduring ties with the Student Volunteer Army Association after entering a brotherhood relationship in 2010, and has provided rice and other necessities equivalent to KRW 600 million for the last 2 years
to 100 households. DSME also supports the Association through active involvement in other various activities.
DSME Volunteer Corps
Head
Deputy Head
HR Support Office Director
HR Team Leader
Secretariat
Secretary-General
Leader of Corporate Culture
Group
Assistant Administrators
2 dedicated personnel
Major Commitments to Community
1) Community-embedded comprehensive services “Love my Neighborhood” project
Designed to provide customized service activities to meet recognized needs in a community, the “Love my
Neighborhood” project (employee-led) began in Jisepo in November 2012.
On a particular day, 460 employees repaired houses, entertained senior citizens, painted a mural, picked up trash,
distributed free reading glasses, repairing school facilities, and gave out “banchan” (side dishes for rice).
2) ‘Eoulim Concert’
The “Eoulim Concert” is hosted once a month and has offered musicals, jazz and classical music, and a tango
performance. In a community largely without a cultural infrastructure, the “Eoulim Concert” is free for Geoje
residents. Last year approximately 3,000 residents attended these events.
8) Hope Scholarship for young talent
Capable students from families with poor finances who would normally be accepted at gifted schools are able to
do so as the Hope Scholarship covers tuition and living expenses for 3 years upon entry. DSME is interested in
providing educational opportunities for students from families undergoing financial hardships.
9) Educational Assistance
Since signing an exchange program agreement in July 2011 to facilitate creative experiential activities with Geoje
Office of Education Support, we have provided a total of 23 free education sessions to approximately 2,000 participants last year. Beneficiaries include middle and high school students, senior citizens in college, and principals.
62 - 63
1) Community service and supporting activities
• Volunteer service for communities
- Volunteer activities
-. 23,864 participants/ 52,717 hours
-. Providing necessities to senior citizens living alone, children, and the disabled; repairing houses, assisting
welfare facilities for the disabled, bathing, environmental cleanup activities, covering tuition, and offering
arts performances.
- Social contribution
-. Providing food to needy households, environmental cleanup, comprehensive serving activities, repairing
school facilities and houses for senior citizens living alone.
• Supporting the local economy
- Supporting the community
-. 60 activities, including the Okpo Sea Battle festival and festivals with other adjacent regions
-. Amount: KRW 206 million
- Bus services
-. 35 activities, including bus rentals to marine festivals (KRW 200 million)
-. Amount: KRW 284 million
- Purchases of“Geoje Sarang”gift cards for use in the local economy
-. 2006 to present: KRW 29.941 billion
-. 2012 alone: KRW 7.622 billion
- Purchases of Geoje agricultural products
-. In 2012, KRW 15.115 billion
2) Donation Activities
• Employee Donations
- Regular donation to communal welfare facilities: KRW 94 million from 1,990 people
- 2012 Fundraising by labor and management: KRW 121 million
• Company Donations
- Regular donations to Student Volunteer Army Association: KRW 50 million/quarter (for rice and other living
expenses for senior citizens living alone and recipients of national basic livelihood)
- Various items to local welfare facilities: KRW 31 million
- Various items to local welfare facility committees: KRW 2 million
- Support for local schools: KRW 11 million
- Support for DSME Hope Town on Sorok island: KRW 13 million
- Scholarships: KRW 3 million
Real Information
64 - 65
Real Globalization
Real Globalization
DSME’s wide business network offers the best in synergistic services, infrastructure for global competitiveness
and enhancement of customer value.
DMHI
DSEC
SHINHAN MACHINERY CO.,LTD.
DSSC
DSSC
FLC
PT. DSME Indonesia
DSTN
DSSW
WELLIV
DEWIND
66 - 67
Real Globalization
68 - 69
Global DSME
Domestic Subsidiaries
DSEC
Originally specializing in design, DSEC has branched out to be a
total engineering and resourcing company for the world's best
shipbuilding / offshore companies, providing shipbuilding structure exports, quality tests and logistics services.
DSSW
Date established
February 17, 1993
Capital
KRW 7.1 billion
2012 Sales
KRW 268.9 billion
Website
http://www.idsec.co.kr
Incorporated into DSME as a subsidiary in April 2010, DSSW produces blocks, ship hatch covers, propellers and shafting for mid-size
ships and land-based and offshore products. Located in the Free
Economic Zone at the Yulchon Industrial Complex, Gwangyangman, South Jeolla Province, DSSW operates 9 exclusive factories.
FLC
FLC operates Sunning Point Country Club, a series of premier
golf courses accessible from Seoul, and the Future Leadership
Center, a professional training institute for companies.
April 1, 2010
Capital
KRW 41.9 billion
2012 Sales
KRW 201.1 billion
Website
http://www.sw-hi.com/
Date established
September 1, 1990
Capital
KRW 5 billion
2012 Sales
KRW 289.2 billion
Website
http://www.shinerpia.com/
Shinhan Machinery
Date established
February 1, 2011
Capital
KRW 51.7 billion
2012 Sales
KRW 7.6 billion
Website
http://www.sunningpoint.co.kr
http://www.futureleader.co.kr
Founded in 1990, Shinhan Machinery was incorporated into DSME
in September 2007, and is becoming the world's premier company specializing in ship superstructures. With world-class technical
skills in shipbuilding and offshore plants, distinguished quality and
strict safety measures, Shinhan Machinery is a reliable partner.
Overseas Subsidiaries
WELLIV
WELLIV provides various types of business support for DSME including accommodations, security, transportation, customer support for foreign ship owners and serves
60,000 meals a day. In addition, WELLIV is engaged in construction, commercial and
residential building management, landscaping and pest control, and a number of other
services including Admiral Hotel, ticketing and domestic and foreign tourism services.
Date established
Date established
January 1, 2005
Capital
KRW 6 billion
2012 Sales
KRW 160.7 billion
Website
http://www.welliv.co.kr
DMHI
Location
Mangalia, Romania
2012 Sales
KRW 287.7 billion
Date established
January 23, 1997
Areas of business
shipbuilding and repair, land and sea
steel structures
Capital
USD 103.9 million
Website
www.dmhi.ct.ro
DSC
DSC concentrates on construction of national infrastructure such
as subway lines, highways, tunnels and harbors. DSC is also proficient in construction of large-scale facilities such as block assembly factories, apartments, high-rise residential buildings and
general business facilities.
DSSC
Date established
April 14, 2000
Capital
KRW 85 billion
Location
Yantai, China
2012 Sales
KRW 195.2 billion
2012 Sales
KRW 492.3 billion
Date established
September 13, 2005
Areas of business
ship block manufacturing, land-based
and offshore plant design, manufacture,
installation and construction
Website
http://www.dsmec.com/
Capital
USD 79.9 million
Website
www.dsme.cn
Date established
October 1995
Capital
KRW 300 million
2012 Sales
KRW 20.2 billion
Website
-
DSME SMC
DSME SMC, a mining company located at Haenam, South Jeolla
Province, is engaged in exploration, development and mining of
minerals.
DSTN
Location
Trenton, Nova Scotia, Canada
2012 Sales
KRW 55.5 billion
Date established
July 13, 2010
Areas of business
wind generator towers and blades
Capital
CAD 40 million
Website
www.dsmetrenton.com
Real Globalization
Global DSME
Overseas Offices
DSME Oman
London Branch
Location
Muscat, Oman
2012 Sales
KRW 6 billion
Date established
June 14, 2008
Areas of business
Local management of ODC
(#7 below) and hotel operation
Capital
USD 1.3 million
Website
-
Unit C402, Westfield London Shopping Centre,
Ariel Way, London, England W127FD
Oslo Branch
Vollaveien 13C, P. O. BOX 67,
N-1324 Lysakar, Norway
PT. DSME Indonesia
Location
Indonesia, Jakarta
2012 Sales
-
Date established
December 16, 2012
Areas of business
engineering, purchase, shipbuilding
design
Capital
USD 5.5 million
Website
-
Greece Branch
1 Possidonos Ave. & 1 Goumi Alimos 174 55, Greece
Houston Branch
950 Threadneedle St., Suite 270
Houston, Texas, U.S.A 77079
PAENAL Shipyard
Location
Porto Amboim, Angola
2012 Sales
USD 150 million
Date established
October 15, 2010
Areas of business
manufacture and installation for
land-based and offshore plant construction
Capital
USD 1 million / Investment excluding capital:
USD 150 million
Website
-
Tokyo Branch
15F, Shiroyama Trust Tower 3-1, Toranomon 4-chome,
Minato-ku, Tokyo 105-6015, Japan
Luanda Branch
ODC (Oman Drydock Company: Outsourcing Management)
Location
Duqm, Oman
2012 Sales
USD 30 million
Date established
May 17, 2006
Areas of business
ship repair, remodeling, offshore
and other steel construction
Capital
(Supported by Oman government)
Website
www.omandrydock.com
RuaEngraciaFragoso, Predio “Kalunga
Atrium” No.1 PisoLetra 103, Luanda, Angola
Dubai Branch
Office #1010, Grosvenor House Commercial Tower, Sheikh
Zayed Rd, P.O. Box 191121, Dubai, UAE.
Shanghai Branch
Shanghai Office, Room# 1110 Unit B, Far East International
Plaza, No.317 Xianxia Road, Shanghai 200051
70 - 71
Singapore Branch
#14-01 Suntec City Tower One,
7 Temasek Boulevard, Singapore 038987
Perth Branch
Level 28, AMP Building,
140 St. Georges Terrace, Perth WA 6000, Australia
Brazil Branch
Av. José da Silva de Azevedo Neto,200 Sala 402 Bloco 04,
Barra da Tijuca,Rio de Janeiro, RJ,Brasil
Ecuador Branch
Av. 12 de Octubre N24-379 y Av.Colon EdificioBorreal,
Piso 7, Oficina 701 Quito, Ecuador
Kuala Lumpur Branch
Suite 28.04, Level 28, Menara Citibank,
165 JalanAmpang, 50450 Kuala Lumpur, Malaysia
Jakarta Branch
Tempo Scan tower 31st floor Jl HR Rasuna Said Kav. 3-4
Jakarta 12950, Indonesia
Frankfurt Branch
Frankfurt str. 92, 65760 Eschborn, Germany
Financial Review
72 - 73
Appendix
Performance of Sustainable Growth
74
GRI G3.1 Index
76
Participation in Societies & Associations
80
List of Awards
People who helped
81
Appendix
74 - 75
Performance of Sustainable Growth
Category
Major Items
Financial Performance
Sales
Income
Operating Income
Net Income
Assets,
Liabilities,
Equity
Value
Remarks
175,853
Total Liabilities
11,567,970
Temporary
12,398
293
5,235
Production workers
7,100
293
Human Resources & Community Involvement
Gender
Female
12,049
642
Work location
886
Okpo
11,662
143
55.9
Production workers only
Union membership (%)
Contributions
Annual training hours (h/person)
Value
Total tonnage of used material
17
Volunteering hours
52,717
Participation
23,864
electricity (TJ)
4,834
2,460,000
Water supply (tons)
Recycled water (tons)
142,875
Discharge
433,239.6tCO2eq
NOX
-
SOX
-
22.66
146,653.10
Paid treatment (tons)
47,094
Sales (tons)
85,827
1,543
Internal treatment (tons)
98,016
Board of Directors
66.80%
Donated (tons)
12,188.60
Discharge (tons)
1,351,414
3.87
SS (PPM)
1.97
COD (PPM)
13.33
SS (PPM)
4.62
COD (PPM)
13.55
SS (PPM)
4.89
2
4,160,000
Punishment if failing to correct
non-compliances
Heavier fines
Environment cost (KRW thousand)
29,557,642
Laundry water
BOD (PPM)
Number of violations
Corporate
Governance
2013 goal: 509,733 tCO2 eq
-
Heavy equipment
waste water
Cost
About 12%
Ozone damaging discharges
Overall waste
water treatment
Environmental
regulations
2013 target: 8,428
2,587
Recycling (tons)
Water quality
1,810,000
Fuel consumption
(gas+liquid+combustion)
Total waste (tons)
Waste
Remarks
7,421.3
PM (dust, tons)
Seoul
Overseas
Atmospheric
discharge
Environmental Performance
Office Workers (incl Design)
Other
Greenhouse
gas
Male
Training &
education
Water
63
Executives
Energy
*Based on K-IFRS
(Unit: Million KRW)
Job category
Employment
*Based on Consolidated Statements
4,554,258
Type
Major Items
Energy consumption (TJ)
486,265
16,122,228
Regular
Category
Material
14,057,819
Total Assets
Total Equity
Fines (KRW)
Board of Director meetings:
attendance rate (%)
95
Appendix
76 - 77
GRI G3.1 Index
● Reported
◐ Partically reported
◦ Not reported
● Reported
N/A Not applicable
1
Strategy and Analysis
1.1
Statement from most senior decision-maker in organization
4-5
●
1.2
Description of key impacts, risks and opportunities
4-5
●
2
Organizational Profile
2.1
Name of organization
2.2
Page/Additional Information Application Level
8-15, 20
●
Primary brands, product and/or services
20
●
2.3
Operational structure
20
●
2.4
Location of organization's headquarters
20
●
2.5
Location of overseas branch offices and sites
20, 28-29, 66-71
●
2.6
Nature of ownership and legal form
22-23
●
2.7
Markets served
20, 28-29, 66-71
●
2.8
Scale of the reporting organization
20
●
2.9
Significant changes during reporting period regarding size, structure, or ownership
23
●
2.10
Award received in reporting period
80
●
3
Report Parameters
3.1
Reporting period(e.g., fiscal/calendar year) for infromation provided
Cover
●
3.2
Date of most recent previous report (if any)
Cover
●
3.3
Reporting cycle (annual, biennial, etc.)
Cover
●
3.4
Contact point for questions regarding the report or its contents
Cover
●
3.5
Process for defining report content
Cover
●
3.6
Boundaries of report
Cover
●
3.7
State any specific limitations on the scope or boundary of report
Cover
●
3.8
Basis for reporting on comparability from period to period and/or between organizations
Cover
●
3.9
Data measurement techniques and bases of calculations for data, including performance index
Cover
●
3.10
Explanation of the effects of & reasons for any re-statements of information provided in earlier reports
3.11
Significant changes from previous reporting periods applied in the report
76-79
●
3.12
Table identifying the location of the Standard Disclosures in the report
76-79
●
3.13
Policy and current practices with regard to seeking external assurances for the report
4
Governance
4.1
Governance of organization
22-23
●
4.2
Indicate whether the Chair of the highest governance body is also an executive officer
22-23
●
4.3
Number of members of highest governance body that are independent and/or non-executive members
22-23
4.4
Mechanisms for shareholders and employees to provide recommendations or directions to highest governance body
4.5
◦ Not reported
N/A Not applicable
EC
Economic Performance Indicators
EC1
Direct economic value generated and distributed
EC2
Financial implications and other risks and opportunities for organization's activities due to climate change
EC3
Coverage of organization's defined benefit plan obligations
EC4
Significant financial assistance received from governments
N/A
EC5
Range of ratios of standard entry-level wages compared to local minimum wage at significant locations of operation
◦
EC6
Policy, practices and proportion of spending on locally-based suppliers at significant locations of operation
◦
EC7
Procedures for local hiring and proportion of senior management hired from within local community
EC8
Infrastructure investments and services provided primarily for public benefit
EC9
Understanding and describing significant indirect economic impacts
EN
Environmental Performance Indicators
EN1
Materials used by weight or volume
6-15, 21, 29,
32-33, 74
●
42, 45-51
●
N/A
◦
58-59, 62-64
●
21, 54-57
●
75
●
42, 48, 75
●
Direct energy consumption by primary energy source
75
●
EN4
Indirect energy consumption by primary source
75
●
EN5
Energy saved due to conservation and efficiency improvements
48
●
EN6
Reductions in energy requirements as a result of energy-efficient or renewable energy-based products and services
36, 47
●
EN7
Indirect energy conservation businesses and achievements
47-48
●
EN8
Total water withdrawal by source
75
●
EN9
Water sources significantly affected by withdrawal of water
EN10
Percentage and total volume of water recycled and reused
EN11
Location and size of land owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity
◦
EN12
Description of significant impacts of activities, products and services on biodiversity
◦
EN13
Habitats protected or restored
◦
EN14
Strategies, current actions and future plans for managing impacts on biodiversity
◦
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by
level of extinction risk
◦
EN16
Total direct and indirect greenhouse gas emissions by weight
EN17
Other relevant indirect greenhouse gas emissions by weight
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
●
EN19
Emissions of ozone-depleting substances by weight
22-23
●
EN20
NOx, SOx and other significant air emissions by type and weight
Compensation for members of highest governance body, senior managers and executives
22-23
●
EN21
4.6
Processes in place for highest governance body to ensure conflicts of interest are avoided
22-23
●
4.7
Process for determining the qualifications and expertise of the members of the highest governance body
22-23
●
4.8
Internally developed statements of mission or values, codes of conduct and principles
6-7, 26, 39, 45
●
4.9
Procedures of highest governance body for management of economic, environmental and social performances
22-23
●
4.10
Processes for evaluating highest governance body's own performance
22-23
●
4.11
Whether and how the precautionary approach or principle is addressed by the organization
25, 38-41
●
4.12
Externally developed economic, environmental and social charters, principles, or other initiatives
4.13
Membership in associations and/or national/international advocacy organizations
4.14
N/A
◦
N/A
EN2
Percentage of materials used that are recycled input materials
EN3
●
75
●
49, 75
●
Total water discharge by quality and destination
75
●
EN22
Total weight of waste by type and disposal method
75
●
EN23
Total number and volume of significant spills
EN24
Weight of transported, imported, exported or treated wastes deemed hazardous under the terms of the Basel Convention
Annex Ⅰ,Ⅱ,Ⅲand Ⅳ
75
●
EN25
Name of water bodies significantly affected by the reporting organization's discharges of water and runoff
49
◐
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
51
●
EN27
Percentage of products sold and their packaging materials that are reclaimed by category
EN28
EN29
Significant environmental impacts of transporting products and other goods and materials used for the organization's
operations and transporting members of the workforce
EN30
Total environmental protection expenditures and investment by type
21
●
Bases for identification and selection of stakeholders with whom to engage
●
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and stakeholder group
24
●
4.17
Key topics and concerns raised through stakeholder engagement and responses to them
24
●
●
●
●
24
42, 47, 75
47, 75
80
List of stakeholder groups engaged by the organization
●
47-48, 75
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental
laws and regulations
4.15
◦
75
◦
N/A
51, 75
●
47
●
48, 50-51
●
Appendix
78 - 79
GRI G3.1 Index
● Reported
◦ Not reported
LA
Labor Practices and Decent Work Performance Indicators
LA1
Total workforce by employment type, employment contract and region
59, 74
●
LA2
Total number and rate of employee turnover by age group, gender and region
59, 74
◐
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees
61
●
LA4
Percentage of employees covered by collective bargaining agreements
59, 74
●
LA5
Minimum notice period(s) regarding significant operational changes
LA6
Percentage of total workforce represented in formal joint management-worker health and safety committees
43
●
LA7
Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities
51
●
LA8
Education, training, prevention and risk-control programs to assist workforce members, their families, or community
members
51-53
●
LA9
Health and safety topics covered in formal agreements with labor unions
51-53
●
LA10
Average hours of training per year employee
58, 74
●
LA11
Programs for skills management and lifelong learning for continued employability and managing career endings
35, 59-61
◐
LA12
Percentage of employees receiving regular performance and career development reviews
LA13
Composition of governance bodies and breakdown of employees per category by indicators of diversity
LA14
Ratio of basic salary of men to women by employee category
◦
LA15
Return to work and retention rates after paternal leave
◦
HR
Human Rights Performance Indicators
HR1
Percentage and total number of significant investment agreements that include human rights clauses or that have
undergone human rights screening
● Reported
N/A Not applicable
◦
SO
Society Performance Indicators
SO1
Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on
communities
SO2
Percentage and total number of business units analyzed for risks related to corruption
SO3
◦ Not reported
N/A Not applicable
46, 49
●
Percentage of employees trained in organization's anti-corruption policies and procedures
27
●
SO4
Actions taken in response to incidents of corruption
27
●
SO5
Public policy positions and participation in public policy development and lobbying
80
●
SO6
Total value of financial and in-kind contributions to political parties, politicians and related institutions by country
N/A
SO7
Total number of legal actions for anti-competitive behavior and monopoly practices, and outcomes
N/A
SO8
Monetary value of significant fines, and total number of non-monetary sanctions for non-compliance with laws and
regulations
SO9
Operations with significant potential or actual negative impacts on local communities
SO10
Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on
local communities
PR
Product Responsibility Performance Indicators
PR1
Life cycle stages in which health and safety impacts of products and services are assessed, and percentage of significant
products and services subject to such procedures
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of
products and services during their life cycle, by type of outcomes
PR3
Type of product and service information required by procedures, and percentage of products and services subject to such
information requirements
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning products and service
information and labeling
N/A
51, 75
●
N/A
51
●
◦
22, 59, 74
●
◦
26-27
◐
38-41
●
N/A
40-41
●
N/A
HR2
Percentage of significant suppliers and contractors that have undergone screening on human rights
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to
operations, including percentage of employees trained
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
HR3
27
●
PR6
Programs for adherence to law, standards and voluntary codes related to marketing communications
N/A
HR4
Total number of incidents of discrimination and actions taken
27
●
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications
N/A
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant
risk
◦
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
N/A
HR6
Operations identified as having significant risk for incidents of child labor and measures taken
N/A
PR9
Monetary value of significant fines for noncompliance with laws and regulations concerning provision of products and
services
N/A
HR7
Operations identified as having significant risk for incidents of forced labor and measures taken
N/A
HR8
Percentage of security personnel trained in the organization's policies or procedures concerning human rights relevant to
operations
◦
HR9
Total number of incidents of violations involoving rights of indigenous peoples and actions taken
N/A
HR10
Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments
HR11
Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms
◦
27
●
38-41
●
Appendix
No.
1
Name of Society/Association
Gyeongnam Employers Federation
No.
31
Korea Association of Standards & Testing Organization
2
Gyeongnam Region Industrial Security Executive Association
32
Fair Competition Federation
3
Gyeongnam Region Industrial Security Association
33
Korea Customs Logistic Association
4
Gyeongnam Environmental Engineers Association
34
Korea Association of Robot Industry
5
Research Cooperatives, Institute for Advanced Engineering
35
Korean Society of Marine Engineering
6
Bar Association of New Zealand
36
Korea Defense Industry Association
7
Construction Association of Korea
37
Corrosion Science Society of Korea
8
The Korean Institute of Metals & Materials
38
Korean Association of Occupational Health Nurses
9
Korean Society of Mechanical Engineers
39
Korean Association for Industrial Technology Security
10
West Branch of Gyeongnam, Korean Industrial Safety Association
40
Korea Industrial Technology Association
11
Korean Society of Construction Engineers
41
Korea Listed Companies Association
12
Korean Welding & Joining Society
42
13
Korean Institute of Electrical Engineers
14
80 - 81
People who helped
Department
Management Planning
Engineering Planning &
Administration
Corporate Culture
Daewoo Mangalia Shipyard
Win-Win Growth
Position
Name
Department
Position
Name
Deputy General Manager
Sunjae Koh
Information System
Assistant Manager
JinKook Oh
General Affairs
Manager
Soohwan Kang
Assistant Manager
Suja Kim
Assistant Manager
Sarom Park
Associate
Yeonbi Kang
Associate
Hyosun Jang
Assistant Manager
Boram Kim
Associate
Hyunjin Noh
Youngkon Kim
Manager
Sangwook Hwang
Associate
Youhee Choi
Associate
Seokmo Yang
Auditing Committee of Korea Listed Companies Association
Defense Industry
Overseas Marketing
Associate
Junho Jung
43
Forum, Korea Listed Companies Association
Health Management
Manager
Seungcheol Park
Society of Naval Architects of Korea
44
Korea Fire Safety Association
Manager
15
45
Youngsun Won
American Bar Association
Korean Society for Noise & Vibration Engineering
Business Development
Planning
16
Society of Naval Architects & Marine Engineers (SNAME)
46
Korea Safety&health education development consultative group
Business Planning
Manager
Dongki Kim
17
Seoul Bar Association
47
Korea Electric Engineers Association
18
Association for Safety of Defense Industry in Seoul
48
Korea Offshore & Shipbuilding Association
19
Korea Association for Deep Ocean Mineral Development
49
Korea Middle East Association
20
Environment Preservation Association of Gyeongnam & Ulsan
50
Korea Standard Association
21
Japan Society of Welding
51
Korea Wind Energy Industry Association
22
Industrial Health Association of Korean Enterprises
52
Korea Project Management Association
23
Safety & Health Association of Shipbuilding Industry
53
Korean Society of Ocean Engineers
24
Ship Design Research Study, Society of Naval Architects of Korea
54
Society of CAD/CAM Engineers
25
Emergency Planning Committee under Ministry of Knowledge Economy
55
Korea DME Association
26
Gyeongnam branch, Emergency Planning Committee under Ministry
of Knowledge Economy
56
KOREA IT Business Promotion Association
27
Korea Plant Industries Association
57
KOREA CQ
28
Korea Gas Union
29
Korea Construction Equipment Manufacturers Association
30
Health & Safety Committee of Korea Employers Federation
Department Head
Kwanho Lee
Assistant Manager
Hyuntak Song
Cooperating Company
Planning
Assistant Manager
Kyungsoo Jeon
Manager
Yohan Yoon
PR 1
Assistant Manager
Sungmi Kim
Assistant Manager
Sangkyu Lee
Wonyong Park
Quality Planning
PR 2
Finance 1
Yongjoo Lee
Youngho Jeon
Manager
Euiseob Jung
Associate
Jinub Park
Finance 2
Manager
Jungil Kim
DSME Trenton
Jongcheol Lee
Sangwon Jung
Deputy Director
Daecheon Kim
G.O.C
Assistant Manager
Taeyoung Kim
HSE Coordination
Associate
DaveCrofton
Board of Directors
Jongbeom Kim
HSE Planning
Manager
Hongsik Seo
Personnel Department 1
Associate
Sooyeon Jang
HR Division 1
Associate
Minki Son
Finance Planning
Kyungseok Joo
Associate
Sanghee Han
Associate
Jongseo Kim
Ethics Planning
Strategy 1
IR
PT DSME Indonesia
Iksoo Yoon
Assistant Manager
Byungkwang Son
Associate
Jookyung Kim
Manager
Cheolseung Lee
Survey Card
STAMP
Sender
List of Awards
Corporate
Personal
•2012 Korean Business of Mutual Cooperation, Seoul
Economic Network
•The 12th Korea Investor Relations Congeniality Award
•Best Company in Machine & Shipbuilding,
2012 Green Ranking
•The 11th Korea SCM Grand Prize in
Manufacturing
•2nd year designated as Role Model Institution for “Green
Wheel”, Ministry of Environment
•Commendation as Excellent Institute for Blood
Donations, Governor of South Gyeongsang Province
•Bongseop Yu – Commendation from the Minister of Knowledge Economy /
Human Resources Development, The 39th Commerce & Industry Day
•Changyeol Song – Commendation from the Prime Minister, Labor Day 2012
•Shipbuilding & Marine Day, KOSHIPA
Kyeongman Seo – Commendation from the President of Korea
Sanghong Jeon, Yeongcheol Ko – Commendation from the Minister of Knowledge
Economy
Suho Lee – Award from the Minister of the Korean Intellectual Property Office
Jinguk Park – Excellent Shipbuilding & Marine Professional
•Deoksu Kim – Industrial Award, The 46th Trade Day
Receiver
The 2013 DSME Sustainability Report uses FSC (ForHSE Operation
TeamCouncil)-certified paper, bearing the
est Stewardship
South Gyeongsang
logo carriedProvince,
only byGeoje-shi,
products made using timber from
Aju-dong 1,
environmentally
developed
and managed forests. the
Sustainability Report PIC
6
report was printed at a FSC-certified print shop using
5
6 ink which
7 1drastically
4
soy oil
reduces the emissions of
air pollutants.
Appendix
No.
1
No.
31
Gyeongnam Employers Federation
80 - 81
People who helped
Department
Korea Association of Standards & Testing Organization
2
Gyeongnam Region Industrial Security Executive Association
32
Fair Competition Federation
3
Gyeongnam Region Industrial Security Association
33
Korea Customs Logistic Association
4
Gyeongnam Environmental Engineers Association
34
Korea Association of Robot Industry
5
Research Cooperatives, Institute for Advanced Engineering
35
Korean Society of Marine Engineering
6
Bar Association of New Zealand
36
Korea Defense Industry Association
7
Construction Association of Korea
37
Corrosion Science Society of Korea
8
The Korean Institute of Metals & Materials
38
Korean Association of Occupational Health Nurses
9
Korean Society of Mechanical Engineers
39
Korean Association for Industrial Technology Security
10
West Branch of Gyeongnam, Korean Industrial Safety Association
40
Korea Industrial Technology Association
11
Korean Society of Construction Engineers
41
Korea Listed Companies Association
12
Korean Welding & Joining Society
42
13
Korean Institute of Electrical Engineers
14
Management Planning
Engineering Planning &
Administration
Corporate Culture
Daewoo Mangalia Shipyard
Win-Win Growth
Position
Name
Department
Position
Name
Sunjae Koh
Information System
Assistant Manager
JinKook Oh
General Affairs
Manager
Soohwan Kang
Assistant Manager
Suja Kim
Assistant Manager
Sarom Park
Associate
Yeonbi Kang
Associate
Hyosun Jang
Assistant Manager
Boram Kim
Associate
Hyunjin Noh
Youngkon Kim
Manager
Sangwook Hwang
Associate
Youhee Choi
Associate
Seokmo Yang
Auditing Committee of Korea Listed Companies Association
Defense Industry
Overseas Marketing
Associate
Junho Jung
43
Forum, Korea Listed Companies Association
Health Management
Manager
Seungcheol Park
Society of Naval Architects of Korea
44
Korea Fire Safety Association
Manager
15
45
Youngsun Won
American Bar Association
Korean Society for Noise & Vibration Engineering
Business Development
Planning
16
Society of Naval Architects & Marine Engineers (SNAME)
46
Korea Safety&health education development consultative group
Business Planning
Manager
Dongki Kim
17
Seoul Bar Association
47
Korea Electric Engineers Association
18
Association for Safety of Defense Industry in Seoul
48
Korea Offshore & Shipbuilding Association
19
Korea Association for Deep Ocean Mineral Development
49
Korea Middle East Association
20
Environment Preservation Association of Gyeongnam & Ulsan
50
Korea Standard Association
21
Japan Society of Welding
51
Korea Wind Energy Industry Association
22
Industrial Health Association of Korean Enterprises
52
Korea Project Management Association
23
Safety & Health Association of Shipbuilding Industry
53
Korean Society of Ocean Engineers
24
Ship Design Research Study, Society of Naval Architects of Korea
54
Society of CAD/CAM Engineers
25
Emergency Planning Committee under Ministry of Knowledge Economy
55
Korea DME Association
26
Gyeongnam branch, Emergency Planning Committee under Ministry
of Knowledge Economy
56
KOREA IT Business Promotion Association
27
Korea Plant Industries Association
57
KOREA CQ
28
Korea Gas Union
29
Korea Construction Equipment Manufacturers Association
30
Health & Safety Committee of Korea Employers Federation 2013 Sustainablity Report Reader Survey
Department Head
Kwanho Lee
Assistant Manager
Hyuntak Song
Cooperating Company
Planning
Assistant Manager
Kyungsoo Jeon
Manager
Yohan Yoon
PR 1
Assistant Manager
Sungmi Kim
Assistant Manager
Sangkyu Lee
Wonyong Park
Quality Planning
PR 2
Finance 1
Yongjoo Lee
Youngho Jeon
Manager
Euiseob Jung
Associate
Jinub Park
Finance 2
Manager
Jungil Kim
DSME Trenton
Jongcheol Lee
Sangwon Jung
Deputy Director
Daecheon Kim
G.O.C
Assistant Manager
Taeyoung Kim
HSE Coordination
Associate
DaveCrofton
Board of Directors
Jongbeom Kim
HSE Planning
Manager
Hongsik Seo
Personnel Department 1
Associate
Sooyeon Jang
HR Division 1
Associate
Minki Son
Finance Planning
Kyungseok Joo
Associate
Sanghee Han
Associate
Jongseo Kim
Ethics Planning
Strategy 1
IR
PT DSME Indonesia
Iksoo Yoon
Assistant Manager
Byungkwang Son
Associate
Jookyung Kim
Manager
Cheolseung Lee
DSME
For continuous improvements to these reports, DSME would appreciate your feedback.
1. How would you identify yourself?
❶ DSME employee ❷ Shareholder ❸ Customer ❹ Supplier ❻ Community member ❼ Investment Analyst ❽ Student ❾ Other
❸ Neutral ❹ Unsatisfied
List of Awards
❺ NGO
2. How satisfied are you with the report?
Corporate
❶ Very Satisfied ❷ Satisfied 3. Which section attracted you the most?
Personal
❺ Very Unsatisfied
•2012 Korean Business
of Mutual Cooperation,
Seoul
•Bongseop Yu – Commendation
from the Minister of Knowledge Economy /
❹ Creation
❷ Key Performance At a Glance ❸ Corporate Summary
& Distribution of Revenue ❺ Corporate Governance
❶ Business Area
Economic Network
Human Resources Development, The 39th Commerce & Industry Day
❿ Technological Competitiveness
❻ Stakeholder Communication
❼ Risk Management
❽ Ethical Management ❾ Financial Highlight
•The 12th Korea Investor
Relations Congeniality
Award
•Changyeol Song – Commendation
from
the Prime Minister, Labor Day 2012
 HSE
Management
System  Growing Together  Customer Satisfaction Organizational Culture
 Others
•Best Company in Machine & Shipbuilding,
•Shipbuilding & Marine Day, KOSHIPA
4. Please comment on areas that need improvement
and information
would like to see
future
reports.of Korea
Kyeongman
Seo –you
Commendation
frominthe
President
2012 Green Ranking
th
Sanghong
Jeon,
Yeongcheol
Ko
–
C
ommendation
from the Minister of Knowledge
•The 11 Korea SCM Grand Prize in
Economy
Manufacturing
Suho Lee – Award from the Minister of the Korean Intellectual Property Office
•2nd year designated5. as
Role
Model
“Green
If you
have
furtherInstitution
comments,for
please
specify. Jinguk Park – Excellent Shipbuilding & Marine Professional
Wheel”, Ministry of Environment
•Deoksu Kim – Industrial Award, The 46th Trade Day
•Commendation as Excellent Institute for Blood
Donations, Governor of South Gyeongsang Province
▶ Please provide us with the following information if you would like to receive the DSME Sustainability Report in the future.
Name : Address :
Telephone :
Fax :
e-mail :
The 2013 DSME Sustainability Report uses FSC (Forest Stewardship Council)-certified paper, bearing the
logo carried only by products made using timber from
environmentally developed and managed forests. the
report was printed at a FSC-certified print shop using
soy oil ink which drastically reduces the emissions of
air pollutants.

Essential - Sustainability Disclosure Database

Transcription

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