The world’s biggest shipbuilder Hyundai Heavy Industries (HHI) recorded the worst quarterly net loss so far, amounting to USD 1.4 billion for July-September period.
Growing competition from Chinese shipbuilders and slumping demand from European owners has brought HHI’s operating loss to 1.93 trillion won, plunging from an operating profit of 222.4 billion won.
The company’s orderbook was 25.1 percent lower for the first nine months of 2014 when compared to the same period last year.
The company’s revenue saw 5.6% dip to 12.40 trillion won.
The struggling South Korean shipbuilder has already undertaken restructuring measures which saw HHI lay off 81 out of 262 executives, cutting its number of executive by 31 percent, according to Korea Herald.
As a way of cutting back on expenses the company said it was considering closing unprofitable business branches such as those engaged in renewables.
What is more, the company may be facing strike for the first time in two decades as unionized workers threat to stop production if the management doesn’t sort out wage and benefit issues.
The company has also received negative criticism for assigning dangerous jobs to its subcontractors, as only this year the death toll at the HHI rose to seven workers employed by subcontractors.
The latest victim was a 55-year old worker that was crushed under a falling piece of metal equipment on October 23, who died two days after due to extensive injuries, South Korean daily The Hankyoreh writes.
World Maritime News Staff