April 25, 2024
Industrials
DSME to carry out W2.5tr self-rescue plan
[THE INVESTOR] Daewoo Shipbuilding & Marine Engineering is ready to implement 2.5 trillion won (US$2.14 billion) worth plan of self-rescue measures this year, company officials said on Jan. 23.
As part of the measures, the shipyard plans to cut its workforce by some 2,000 this year to some 8,500 in total by the end of the year, and accelerate its move to spin off its non-core business units such as its IT division.
Last year, DSME cut the number of employees by 2,000 to 11,200 as of end-December, they said. It is also seeking to sell assets worth some 500 billion won, including buildings and floating docks.
Last year, DSME said it would implement its self-rescue measures totaling 6 trillion won by 2019.
The shipyard is expected to have logged an operating loss of 528 billion won on sales of 13.12 trillion won last year, according to Daishin Securities, which compares with an operating loss of 2.94 trillion won and sales of 15 trillion won the previous year.
South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis, which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.
(theinvestor@heraldcorp.com)
As part of the measures, the shipyard plans to cut its workforce by some 2,000 this year to some 8,500 in total by the end of the year, and accelerate its move to spin off its non-core business units such as its IT division.
Last year, DSME cut the number of employees by 2,000 to 11,200 as of end-December, they said. It is also seeking to sell assets worth some 500 billion won, including buildings and floating docks.
Last year, DSME said it would implement its self-rescue measures totaling 6 trillion won by 2019.
The shipyard is expected to have logged an operating loss of 528 billion won on sales of 13.12 trillion won last year, according to Daishin Securities, which compares with an operating loss of 2.94 trillion won and sales of 15 trillion won the previous year.
South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis, which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.
(theinvestor@heraldcorp.com)
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