In the past years, the Ningbo Company has kept successive and rapid development in output, productivity, safety and quality and made great progress. We possess the scale of 2000 people in personnel and own the 800 ton crane which is the biggest in the mainland of China and have purchased various equipment for the third phase worksite.

Nowadays, our company has become one of the excellent enterprises.

This was obtained by the predecessor Head corporation and all the employee with sincerity and efforts. It's very valuable.

I would like to take this opportunity to thank the predecessor Head corporation and all the employee for their making the Ningbo Company become a matured company of large scale.

Everybody! We have realized the reorganization in our company. This is because that the proportion of the Ningbo Company in the headquarters in Korea has much risen and the Ningbo Company becomes more and more important.

This shows that everyone will have more opportunities and should shoulder more responsibility.

In the present, our Samsung Heavy industries is challenging the goal to become one of the "super-first-class enterprises in 2010". As Head corporation, I will do my best to make the Ningbo Company achieve the goal to become one of the "super-first-class enterprises in 2010" successfully.

Here I put forward several demands:

Firstly, ensure perfect quality. The belief and trust of consumers are our life. We will lose the orders without the trust of consumers. Further, our existence will become meaningless and the survival of the company will also be threatened!

For the purpose of the sustained development of the company and individuals, the most important thing for us is to win the belief and trust of consumers, as should never be forgotten!

We should do our duty and make efforts to provide satisfactory products for our customers. As a result, orders will flow continuously into our company.

Secondly, make sure there is no safety misadventure in the worksite.

From now on, will should prohibit any safety misadventure and make our worksite develop toward the goal that there is no safety misadventure forever.

Presently, safety in production is threatened by accidents such as being nipped and falling. In this situation, our compulsory safety rules are always limited. So we should build up the sense of safety and put it into action to ensure safety in production. This is what we have to do for not only ourselves but also our families, workmates and the company. In the meantime, we must form the habit of arrangement, rectification and habituation and eradicate potentially dangerous elements so as to achieve the goal that there is no safety misadventure forever.

Thirdly, normalize the early operation of the third phase worksite.

This year our biggest goal is to finish the construction of the third phase worksite and normalize the early operation of it. People concerned with the construction of T/F have made great efforts to guarantee the project finished on time. Meanwhile, we are pressing forward with the preparations for the training of technical personnel.

The normalization of the early operation of the third phase worksite is a significant project which has to do with our increasing the production capacity directly. It's also an important chance for us to enhance the professional ability and increase the contribution to the company.

On the present basis, our company sets the production goal of 160,000 tons and 26 super-size ship block increased by 12 compared with 2006. As the early operation of the third phase worksite is normalized, our production goal amounts to 120 per cent that of 2006 so as to make delivery on time.

This year, we will achieve the goal of being one of the highest quality companies and make sure there is no safety misadventure in the worksite so that we can make delivery on time and lay the foundation for being one of the "super-first-class enterprises in 2010".

From the on-site inspection, I noticed your self-confidence and endeavor and observed your undaunted courage and strength against difficulties. From now on, I will make efforts and proceed together with you with self-confidence and enthusiasm.

Let us form the strongest cohesion to become one of the "super-first-class enterprises in 2010"!

Finally, I wish you and your families good health and luck!

Thank you!

General manager
CHUN DONG RAK
2007.2.2.