South Korea’s top 3 shipbuilders, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, have come up with their second stage of restructuring plans to their creditors, worth some $5bn, collectively.
The plans consist of a combination of company restructuring, selling of assets and reduction of wages.
Shipbuilder Daewoo is looking to divest its defense industry unit, which produces military ships and submarines, in order to free up much needed capital.
Daewoo is also said to be looking to offload certain of its properties, including its office building in Seoul, appraised at an estimated value of $150m.
Daewoo, as well as Samsung, are also looking to sell their floating docks.
But sales could be difficult, with the current global ship-building industry in recession and demand low.
Hyundai has seen some 8,000 employees leave the company through regular and voluntary resignations since 2015, but they are encouraging more to opt for early retirement packages in order to make further cuts to the wage bill.
Daewoo and Samsung are also looking to reduce staff by about a thousand each this year.
Source: Hellenic Shipping News