South Korean Government Rescues Medium-sized Shipping Companies To Revitalize The Shipbuilding Industry

- Feb 06, 2018-

In order to rejuvenate the shipbuilding industry in Korea and compete with China, the South Korean government finally decided to "save" the two most important medium-sized shipping companies in South Korea, STX Marine Shipbuilding and Chengdong Shipbuilding.

 

According to Korean media reports, South Korea's Ministry of Trade, Industry and Energy (MOTIE) and shipyard executives on a mid-sized consulting firm on the boat to discuss the restructuring of the shipbuilding industry. The report is the result of a South Korean government's request in early January that Samjong KPMG diagnose the competitiveness of the two shipping companies.glenflange

 

The report highlights the revitalization of STX and East Building, rather than liquidation, and recommends that East Coast Shipbuilding, which originally focused on the construction of container ships and medium and large tankers, turn out to be a shipyard specializing in ship repairs, while STX Shipbuilding The management normalization plan should be completed by 30% by the end of April.

 

Earlier news that the South Korean government plans to merge STX shipbuilding and East East shipbuilding. As the creditors of two shipping companies, the Export-Import Bank of Korea and KDB have also been discussing the possibility of mergers. Currently, STX Shipbuilding is managed by Korea Industrial Bank, while Seongdong Shipbuilding is managed by Korea Export-Import Bank.glenflange

 

STX Marine Shipbuilding and East Building Shipbuilding is South Korea's leading medium-sized shipbuilding company, STX Shipbuilding was the world's fourth-largest shipbuilding company, east of South Korea shipbuilding has also been ranked No. 10 in the world's largest order of the mid-sized boat. An industry insider said that Chinese shipping companies are competing for price orders for new ships. What is even worse is that large Korean shipping companies are also trying to obtain the remaining orders due to the downturn of orders. Therefore, the massive restructuring of medium-sized shipping companies is inevitable.