South Korean shipyard merger leads employees to strike again. The latest strike comes ahead of a general assembly at which the merger must be approved. A court has barred employees from interrupting the meeting.
The government in South Korea will increase its support for its strained shipbuilders by USD 60 million. The funds will be earmarked for expanding the yards' presence in, among other sectors, the market for LNG vessels, reports Yonhap.
The South Korean government extends its support for cities affected by the decline in the country's shipbuilding industry. Revitalization of the economy is being delayed, says the South Korean industry ministry.
South Korea's Fair Trade Commission says that foreign regulators will likely keep a close eye on the merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. The new company's market share could weaken competition, notes the commission.
Daewoo Shipbuilding & Marine Engineering is about to be acquired by a competitor, and this has made the yard's employees herald walkouts. The employees fear that the acquisition will result in large-scale layoffs.
In connection with the Stellar Daisy shipwreck case, a South Korean court has rejected an arrest warrant request for a Korean Register surveyor issued by domestic authorities, informs the Korean Register.
11 small and medium-sized shipping companies have applied to the country's government for a state aid scheme in which the state buys ships and leases them back to the shipping companies again, reports Yonhap. The applications pertain ships for a triple-digit million dollar figure, according to the media.
The shipyards in South Korea received the most orders for newbuilds in 2018. This puts the South Korean shipyards back in first place after having been beaten by their Chinese competitors in the past five years, according to numbers from Clarkson Research.
The major South Korean shipbuilders expect to add even more LNG newbuilds to their order books in the coming year. Meanwhile, orders for offshore vessels and rigs are expected to remain low, reports news agency.
Criticism of the South Korean government's subsidies to the country's shipbuilding and shipping sector have grown in scale this year with several massive aid packages. Later this week the OECD will meet to discuss what can be done. Certain countries are allegedly pushing for a tougher approach.
Even though criticism from several western nations is intensifying, the South Korean government has announced a new massive aid package for the country's struggling but vital shipbuilding sector. OECD will review the issue of state subsidies at meeting next week.
For the first time ever, LNG ships look set to account for more than half of the revenue at South Korea's Daewoo Shipbuilding & Marine Engineering. After a profit last year, a new deficit looms in 2019.
In 2018 alone, liner company HMM will receive a triple-digit million dollar figure from the South Korean state, reports media Pulse. South Korea's state aid for shipping companies and shipbuilders is met with fierce criticism from bodies such as the EU.