rss icon Subscribe
desktop mobile

South Korea Restuctures Mid-Sized Shipbuilders

File Photo: STX Offshore & Shipbuilding Co., Ltd

By Aiswarya Lakshmi

The South Korean government decided to restructure two financially-troubled mid-sized shipbuilders, said a report in Business Korea.

While filing for court receivership for the debt-ridden Sungdong Shipbuilding, the government has decided to save STX Offshore and Shipbuilding Co. on condition of slashing 75 percent of its production workforce.
The two shipbuilders are heavily indebted to Korea's two state-run banks, as they have struggled with snowballing losses amid unfavorable oil prices and the worldwide industry downturn.
According to the report, the government held a ministerial meeting to discuss ways to strengthen the industrial competitiveness and announce its restructuring plans for mid-size shipbuilders.
STX Offshore and Shipbuilding will need to reduce the number of production employees to 180. In this case, the company has to cut down about 75 percent of its current production employees at 700. The figure is about 40 percent of the total number of employees at 1,350.
Court receivership for Sungdong is inevitable, and STX requires more serious self-rescue efforts to keep it afloat, said the government sources.
The Korea Development Bank (KDB) is the main creditor of STX and the Export-Import Bank of Korea (Eximbank) manages Sungdong, holding a 67.04 percent stake in it after providing more than 3 trillion won ($2.8 billion) in financial support.

Mar 11, 2018

 

Finance

GoodBulk Launches USD 140 Million IPO

Image: GoodBulk Ltd

GoodBulk, incorporated in Bermuda and headquartered in Monaco, announced that it has launched its

Grindrod Shipping Makes US Debut

Photo: Grindrod Shipping Holdings

Grindrod Shipping Holdings, a global provider of maritime transportation services in the drybulk

Deutsche Bank Sells $1 Bln Ship Loan Portfolio

© kalafoto / Adobe Stock

Deutsche Bank is selling a $1 billion portfolio of legacy shipping loans to an entity owned by

Government Update

DNV GL, EU to Promote Offshore Wind Market in Indian

Image: DNV GL

DNV GL, the world’s largest resource of independent energy experts and certification body

Libya Coastguard Commander Says He Hits Migrants to Protect Them

(File photo: United Nations)

A Libyan coastguard commander sanctioned by the United Nations for alleged human trafficking and

House Set to Debate Offshore Wind Energy Bills in US Waters

© diak / Adobe Stock

A U.S. House committee will kick off debate next week on three new bills aimed at boosting

Maritime Apps