[ Hanjin Takes Over a Majority Stake in DSR-Senator Lines ]

Effective January 1997, Hanjin Shipping Co., LTD., Seoul, the leading
Korean shipping company, will become majority shareholder in the
German DSR-Senator Lines. The three owners, Deutsche Seereederei,
Hanseatische Industrie beteiligungen and Commercium have agreed with
Hanjin on an increase of equity by DM 100 million in 1997.
The agreement reached with Hanjin Shipping, makes considerable sense,
since Hanjin and the Tricon group, consisting of DSR-Senator and Cho
Yang, have signed an agreement last summer for a long term worldwide
cooperation covering the major east/west as well as north/south
trades.
They are likely to be joined by United Arab Shipping Company on the
routes between Europe and the United States east coast on one side
and the Middle East, the Indian subcontinent and Asia on the other.
DSR-Senator Lines will continue to operate totally independent and
maintain its identity as a German based container carrier and Mr.
Sager remain as President with a restructured organization and sales
forces. Whereas Hanjin over the years has concentrated its strength
on the Pacific, Asia and Europe, DSR-Senator Lines has a fairly
strong position on the Atlantic, Mediterranean and Middle East, apart
from a presence in quite a number of north/south trades.
While sales activities of the two carriers will remain separate,
synergy effects will be optimized and realized as from early 1997 to
be in place in 1998 when a series of “pendulum services” covering
all major world markets will be inaugurated with the deployment of
larger and faster vessels from all alliance partners.
By that time the Hanjin fleet will consist of about 50 vessels with a
carrying capacity of about 150,000 TEUs, and DSR-Senator’s of about
30 ships and 100,000 TEUs. Between them, they are likely to carry in
1998 over 3 million TEUs with a revenue of over US$ 4 billion.
Cho Yang and United Arab Shipping will add a further 30 vessels and
about 100,000 TEUs in capacity to the group.
Hanjin and DSR-Senator consider this step a further concentration of
forces in the container industry which is a prerequistic for a
seccessful future in these highly competitive markets.