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THE INVESTOR

Industrials

DSME’s subcontract workers on verge of losing jobs

  • PUBLISHED :January 11, 2017 - 10:26
  • UPDATED :January 11, 2017 - 10:26
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[THE INVESTOR] Thousands of subcontractor workers at Daewoo Shipbuilding & Marine Engineering may lose their jobs as the nation’s major shipbuilder has failed to sign new deals for offshore facilities, industry sources said on Jan. 11.

According to the sources, DSME has 11 offshore plants, six of which are scheduled to be delivered this year.

Usually, up to 2,000 workers are mobilized to work on an offshore plant per day, and a total of 5,400 workers, most of whom come from subcontracting firms, are currently dedicated for the shipbuilder’s offshore facility projects, the sources said.

The problem is that some workers may be let go as the shipyard has bagged few offshore facility deals for the past two years.

Samsung Heavy Industries, DSME’s local rival, recently clinched a US$1.27 billion deal to build an offshore facility, marking the first mega deal of the year for South Korean shipbuilders struggling to bring in new orders.

(theinvestor@heraldcorp.com)
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