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Shipbuilder HHI could close drydocks

Shipbuilder HHI could close drydocks
As the world’s largest shipbuilder Hyundai Heavy Industries (HHI) continues to restructure in the face of a severe downturn it says it may close drydocks.

HHI announced on Monday it was adding to previously announced 25% cut in management staff with voluntary retirement plan in the face of rapidly decreasing orders.

It is also looking at a potential shuttering of parts of its facilities. “At the same time, HHI started reviewing the efficiency of drydock operations in a way to brace for the prolonged sluggish new orders HHI set up a policy to gradually close docks which operate at the lower efficiency rate if low new orders trend persists,” an HHI officer said.

The shipbuilder is also reducing its number of operating departments by 22% to 305 from 391, and plans to sell-off non-core assets such as recreational facilities.

“With new orders drastically shrinking, we are now making our utmost efforts to steer our company toward new reforming measures that will address the current crisis. However, HHI’s business portfolio is well diversified with various businesses such as engine and machinery, electro electric systems and construction equipment,” the HHI officer said.