Signing of mutual growth agreements with excellent suppliers

To foster a culture of fair trade and mutual growth with its partners, Hyosung Heavy Industries signs annual mutual growth agreements pertaining to compliance with fair trade laws and support for mutual growth cooperation, such as cash payments.

Energy Companionship Project with large enterprises and SMEs and support for energy-saving

To assist partners in saving energy and reducing GHG emissions, Hyosung Heavy Industries, together with the Korea Energy Agency, signed business agreements for shared growth with large enterprises and SMEs. We offer our partners energy diagnosis and consulting services. After identifying energy-saving and GHG emission reduction factors through process and on-site diagnoses, we provide problem and economic feasibility analyses, and improvement themes to the energy managers of partners. In addition, as a continuation of the Energy Companion Project, we assist partners in replacing high-efficiency equipment in order to reduce their energy costs.

Provision of individualized instruction and manuals on ESG

Through specialized consulting, Hyosung Heavy Industries carries out a project that provides education on ESG-related topics, such as human rights, ethics, supply chain, environment, safety, and climate action, in order to increase understanding of partners' ESG activities and facilitate their application to management activities. We have provided ESG management manuals to our partners so that they can respond to the growing demand for sustainability management. In addition, we employ an incentive system which awards additional points in supply chain evaluation for businesses that strive to implement an ESG management system.

Support for improvement in workers' work environment

Hyosung Heavy Industries continues to fund worker-only rest areas in an effort to improve the relatively poor working conditions of the workers of its partners. We also provided floor sweepers to protect workers from respiratory diseases through dust control at construction sites. We also delivered masks and hand sanitizers to prevent COVID-19 infection and create a safe work environment for partners' employees.

Educational support for suppliers

Hyosung Heavy Industries conducted training on ethical management; construction quality, environmental and safety management; the Framework Act on the Construction Industry, Act on Contracts to Which the State is a Party, and the Fair Transactions in Subcontracting Act for the CEOs of partners. In addition, we make the Changnyeong Training Center available to our partners for company-led employee training programs and workshops.

Implementation of price indexation of raw materials

Once a month, Hyosung Heavy Industries implements price indexation based on changes in raw material prices and exchange rates for items whose raw materials are copper, aluminum, iron, and wood. This is intended to mitigate partners' price risk due to fluctuations in raw material prices. In addition, we decided to implement unit price indexation based on fluctuations in the cost of raw materials for 14 items previously contracted at fixed prices. For 13 items that had previously been applied with the indexation, we altered the indexation criteria to generate practical effects for our partners.

Supplier communication

To practice mutual growth with its partners, Hyosung Heavy Industries participates in purchase counseling sessions and visits partners in person to learn about their challenges and suggestions. Partners are open to report unreasonable demands or regulatory violations in transactions via online and offline channels such as hotline and Sinmungo (online reporting system). In addition, we maintain constant communication with our partners in order to foster a relationship of trust, and we operate a number of support programs in conjunction with institutional reorganization to ensure that all partners have equal access to various opportunities.

Support for enhancing the safety of suppliers

Hyosung Heavy Industries provides safety equipment so that partners' employees can work in a safe and pleasant environment. We survey the demands of our partners to provide them with automated external defibrillators, forklift speed limiters, and air vests for less-impact falls, and we also provide safety consulting to assess our partners' safety & health level and enhance their capabilities. By preventing safety accidents involving our partners and fostering an environment conducive to the growth of both large enterprises and SMEs, we hope to contribute to increased productivity and revenue.

Performance sharing of supplier proposal activities

Hyosung Heavy Industries activates proposal activities (VOS) that utilize the experience and expertise of partners and implements performance sharing in order to establish collaborative partnerships and enhance procurement competitiveness. All proposals submitted by partners are subject to review, and we share equally in the performance of the adopted proposals.