South Korean shipbuilder Samsung Heavy Industries (SHI) could see its self-rescue plan finalized as the company’s creditor state-run Korea Development Bank (KDB) is set to wrap up SHI’s plan during the week, Yonhap News Agency cited industry sources.
Under the KRW 1.5 trillion (USD 1.3 billion) plan , submitted in May 2016, the financially troubled shipbuilder will make workforce cuts through an early retirement scheme and ask its executives to return part of their salaries.
The plan includes up to 1,500 early retirements by the end of the year, selling of KRW 200 billion worth of real estate assets and disposing of stakes in Doosan Engine.
SHI is one of the country’s Big Three shipbuilders who have been hit by an ordering slowdown prompted by shipping and offshore industry woes.
The company’s compatriot shipbuilder Daewoo Shipbuilding & Marine (DSME) was required to submit layoffs and cost savings, while Hyundai Heavy Industries (HHI) was required to pursue self-rescue plans with creditor banks.
Both DSME and HHI earlier received approval from their creditors to carry out their submitted plans.
World Maritime News Staff