Samsung Heavy and Korea Eximbank Take Reins at Sungdong Shipbuilding

South Korean shipbuilder Samsung Heavy Industries and the Export-Import Bank of Korea (Korea Eximbank) have agreed to take over and jointly manage the financially troubled Sungdong Shipbuilding & Marine Engineering for an initial period of four years, the state-run lender said in a release.

Samsung Heavy will be in charge of Sungdong’s sales, procurement, production and technology sectors, a move expected to attract fresh orders.

In return for taking over shipbuilding operations at Sungdong, Samsung Heavy will be granted the right of first refusal once the shipbuilder completes restructuring and is put up for sale.

Korea Eximbank, the debt stricken Sungdong’s main creditor with KRW 1.6 trillion (USD 1.36 billion) worth of loans and a stake of KRW 1 trillion, will manage finances, human resources, and labor issues at this mid-sized shipbuilder located in Tongyeong, South Gyeongsang Province.

The bank also announced several hundred billion worth of additional loans to Sungdong by year’s end.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Offshore Energy Exhibition and Conference (OEEC) 2020

The three-day event includes an exhibition where an expected 600+ supply chain companies…

read more >

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

2nd GREENTECH IN SHIPPING GLOBAL FORUM

Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >