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

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.