HHI to streamline operations by 20% with merger of shipbuilding and offshore units

The move to consolidate the shipbuilding division and the offshore and engineering division follows the coronavirus (Covid-19) pandemic that has taken a toll on businesses and global demand for ships.

HHI said the merger will take place from 1 July.

The reorganisation is expected to streamline the executive headcounts and business units by 20% and enhance organisational efficiency and competitiveness.

HHI is said to be also looking into streamlining measures at its affiliated shipyards.

The Covid-19 pandemic has severely impacted not just Korea’s shipbuilding industry but also the shipping industry in general.

Earlier, the South Korean government has pledged up to KRW1.25trn ($1bn) to support the country’s ailing shipping industry, which falls under one of seven key industries of the country.