Everyone must share the burden if crisis-stricken Daewoo Shipbuilding & Marine Engineering (DSME) is to survive, says the shipbuilder's chairman, asking his employees to take a pay cut as part of the coming lifeline granted by the state.
The employees at Daewoo Shipbuilding & Marine Engineering are prepared to discuss reduced wages in an effort to save the ailing shipyard. Employee union will now meet with management, reports Korea Herald. The yard could be facing huge state assistance.
Entirely as expected, Hyundai Merchant Marine is selling ten container vessels to the South Korean state, which will then lease them back to the South Korean container carrier right away. The transaction is financed with a combination of cash, shares, and bonds, reports Yonhap.
South Korea's new container carrier, SM Line, which is built mainly on the remains of collapsed Hanjin Shipping, plans to kick off operations with as many as nine routes this year. The carrier then wants to grow to 41 ships on 25 routes over the next five years.
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has won its first order this year, reports Korea Herald. The order for two vessels hits a dry spot for the yard which is in the midst of dire financial woes.
Maersk Line and MSC's South Korean partner HMM now confirms the agreement made with state-owned bank Korea Shipping. The bank will buy ships from HMM and lease them back at a "reasonable price," informs the container carrier.
One of Korea's three huge shipyards, Hyundai Heavy Industries, has now received a go-ahead from its owners to be spun off from the group's other activities. The move is part of the efforts to improve the yard's finances.
All workers at South Korean shipyard Hyundai Heavy Industries will strike for three days starting Thursday. The move comes in protest against the yard's large-scale cost reductions, which include divestments.
Daewoo Shipbuilding & Marine Engineering is looking into its options to prepare for the maturation of massive debt in April, and the company is in talks with certain customers, the CEO tells Korean media. The yard faces close to USD 900 million in debt maturing this year.
Maersk Line and MSC's South Korean collaboration partner Hyundai Merchant Marine will get a majority of the funds made available by the South Korean government to support the country's shipping and shipyard sector. The funds will be used to order new vessels, among other things.
Debt items at South Korean shipbuilding giant DSME stand at USD 877 million this year alone, reports Korea Herald. Delayed payments to the yard account for part of the sum, which the company will likely be unable to pay back.
State-owned Korea Development Bank has put ten Hanjin vessels up for sale at auction, report local media. Anonymous sources tell Korea Herald that the vessels include two container ships and eight bulkers.
South Korea's largest deep sea carrier, Hyundai Merchant Marine, has initiated talks concerning investments in container terminals in Southeast Asia. "We are targeting to make an operating profit in the third quarter of next year," says CEO Yoo Chang-keun.
The South Korean shipbuilding sector could see upwards of 27,000 jobs disappear in the first half of the year, reports Korean media, citing new data. The number of new orders for the sector is expected to remain under pressure.
A newly-established state-owned South Korean shipping unit will purchase Hyundai Merchant vessels for more than USD 500 million and lease them back to the container carrier at favorable charter rates as part of a state aid program.
Daewoo Shipbuilding & Marine Engineering (DSME) will implement a cost reduction initiative totaling USD 2.1 billion and which is expected to see 2,000 jobs made redundant before the end of the year. The plan is part of a large-scale restructuring ahead of 2019.
The chief executive of struggling Korean shipbuilder Daewoo was questioned by state prosecutors on Tuesday over allegations that the yard tried to cover a major deficit in 2015 by underreporting losses.
The new South Korean container carrier SM Shipping, built on the remains of Hanjin Shipping, will have to gather close to 90,000 containers if it wants to launch operations in March. A spokesperson from SM Shipping explains that the carrier is working at full steam to solve the problem.