Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

HHI’s plan to spin-off unit draws flak from labour union

HHI’s plan to spin-off unit draws flak from labour union
Troubled Hyundai Heavy Industries (HHI) is seeking to spin-off a business unit as part of its self-rescue plan, but the labour union has opposed the plan, reports said.

The South Korean shipbuilder stated it may spin-off a facility-assistance business division as the group continues to carry through with a self-imposed restructuring program, Yonhap reported.

The labour union, however, was against the plan as the spin-off of the division with a workforce of 994 would eventually lead to job cuts.

HHI has mapped out a KRW3.5trn ($3bn) worth of self-rehabilitation plan including sale of assets and reduction in workforce, amid the group’s lack of new orders to sustain its income.

Compatriot yards Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries (SHI) are also going through restructuring, as urged by their creditor banks.