South Korea’s third-largest marine and offshore contractor Hanwha Ocean has stopped all work at its Okpo yard on Geoje Island after a fatal accident.
An investigation is under way with the yard expected to remain closed until government officials determine the cause of the blast on 12 January, which claimed one life.
Local media reported that in the afternoon of last Friday there was an explosion in one of the yard’s fabrication shops where a rudder was being fabricated.
A 28-year old subcontractor was thrown some distance and hit by debris from the blast, and he later died in hospital. The victim’s name and nationality are not known to have been made public.
Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, on Monday said that resuming production at the facility would be determined “based on the receipt of the order from the Ministry of Employment and Labor”.
“Our company immediately reported the accident to the police and the Ministry of Employment and Labor, is doing its best to identify and resolve the exact cause of the accident, and is making every effort to prepare measures to prevent recurrence,” added Hanwha Ocean.
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The company admitted it expects “some production disruptions” while the investigation determines the cause of the accident and countermeasures are prepared.
Hanwha Ocean’s current order book includes the P-79 floating production, storage and offloading vessel for Brazil’s Petrobras, and some 100-plus vessels including liquefied natural gas carriers for a range of clients.
Hanwha Ocean, like its counterparts, has been increasingly relying on subcontractors and foreign workers as they strive to remain competitive, particularly against yards in China that typically have lower labour costs.
Hanwha Ocean describes its Okpo yard as “a state-of-the-art production system that spans over 4.9 million square metres” and which includes 38 automated plant facilities.
“The entire design-to-delivery process is managed through an enterprise-wide network based on the latest IT technology,” noted the South Korean offshore and marine contractor.