Small And Medium Shipyard In South Korea Stuck - Order Shortage

- Jan 16, 2018-

Shingdong Shipbuilding Marine and STX Shipbuilding Marine have recently run into operational dilemma. The decision of the government to restructure has been postponed repeatedly, and the operating prospects of the two companies have become increasingly opaque.


Currently, STX Shipbuilding and East East Shipbuilding basically suspended, pending the release of medium-sized shipping companies structural adjustment program. STX shipbuilding only sub-plant is in operation, operating rate was only 70%, the normal work of only 940 employees. Seongdong Shipyard 3 docks have been closed 2, 5 ship to be built should the owner requirements are also shelved, only 300 people in charge of the management of the plant. Glenflange


Two companies "order shortage" situation worsened. In May last year, Chengdong Shipbuilding received no new orders after receiving orders for seven medium tanker ships. Last November, STX Shipbuilding received orders for six medium-sized tanker vessels from Greek Gold Shipbuilding Company, of which two signed a contract because they did not receive a repayment guarantee letter (RG).


Shipbuilding industry experts said: "South Korean small and medium shipyards if they can not afford to go, the ultimate interests will be taken away by Chinese enterprises." STX shipbuilding official said: "In the field of small and medium sized shipbuilding, in addition to some bulk carriers, South Korea's competitiveness remains However, due to the government's decision to repeatedly postpone the restructuring, the market risk has increased, and eventually Chinese companies have taken advantage of their earnings. " Glenflange