According to the South Korean Yonhap News Agency, Hyundai Heavy Industries Co. mentioned it’s going to droop work at its offshore amenities shipyard in August as orders have dried up, marking the newest setback for the world’s greatest shipbuilder.
“We will halt operations until we safe offshore orders,” Hyundai Heavy President and CEO Kang Hwan-goo mentioned in an announcement.
Hyundai Heavy has two main shipyards within the industrial metropolis of Ulsan, about 410 kilometers southeast of Seoul. One is to construct industrial vessels, similar to container carriers and liquefied pure gasoline tankers, and the opposite is to construct high-end offshore amenities, similar to floating manufacturing storage and offloading (FPSO) models.
Hyundai Heavy has misplaced out to Chinese and Singaporean rivals in offshore initiatives lately resulting from larger prices.
In April, a Chinese shipbuilder gained an order to construct an FPSO to be deployed on the maritime border between Mauritania and Senegal.
Hyundai Heavy mentioned it’s going to don’t have any offshore challenge at hand after the final a part of an offshore module leaves the Ulsan shipyard in late July. That challenge includes constructing 4 fastened platforms in an oilfield about 130 km northwest of Abu Dhabi.
The shipyard’s deliberate suspension will lead to giant variety of idle employees, although Kang didn’t elaborate on the difficulty.
Hyundai Heavy had 15,795 staff as of the tip of March.
Kang appealed to staff to chop excessive fastened prices to win offshore orders, saying there was no method to compete with Chinese and Singaporean opponents whose labor prices are roughly a 3rd of Hyundai Heavy’s.
Hyundai Heavy mentioned it’s poised to function the offshore yard when orders come again.
“At this time, we’ll streamline our organizational sources and create a strategic staff to win new orders, which is able to finally allow us to supply higher providers to our shoppers,” mentioned Yune Sung-il, head of Offshore Marketing Division at Hyundai Heavy.
Hyundai Heavy and different South Korean shipbuilders have been hit exhausting by the 2008 monetary disaster resulting from oversupply and decrease demand from transport strains. Hyundai Heavy has undergone a drastic restructuring course of lately by chopping its workforce and promoting non-core belongings to revive its monetary standing. (Source: Yonhap – Image: Yundai Ulsan shipyard / Sowoll)
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