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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.

Lee Hong Liang, Asia Correspondent

June 22, 2016

1 Min Read
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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.

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South Korea

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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