Plans for restructuring will affect world’s big three Samsung Heavy, HHI and DSME
South Korean shipbuilders will undergo restructuring efforts in order to cope withthe present market downturn.
Yonhap reports that the restructuring will affect Hyundai Heavy Industries Co. (HHI), Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering Co. (DSME), as well as many smaller sized companies resulting in the streamlining of operations, and the laying off of some 10,000 workers in the next two to three years.
The latest market crisis can also lead to less competitive yards going bankrupt in the face of dwindling orders. Even the world’s big three shipyards — Samsung Heavy, HHI and DSME — are expected to post losses totaling 10 trillion won this year alone.
“Companies that cannot float on their own need to be ousted, which can help alleviate market uncertainties,” said Financial Services Commission Chairman Yim Jong-yong. “Restructuring can eventually help the national economy.”
Further information may be found by reading the following article by Yonhap News
S. Korean shipbuilders to undergo restructuring to cope with market downturn
