Hyundai Heavy to Close Shipyard amid Lack of Offshore Orders

South Korean shipbuilder Hyundai Heavy Industries has decided to temporarily shut down its offshore shipyard due to a lack of orders, Yonhap said citing the company.

The facility will run out of work by the end of July when it finalizes its last order secured in November 2014. It is scheduled to close its doors in August 2018, marking the first time it shuts down since the start of operations in 1983.

The shipbuilder opted for the move as it cannot afford the yard’s operations until it receives new orders. HHI has not been able to fetch any new deals for offshore units in the past three years.

Although it competed in a number of tenders for newbuilding orders, Hyundai Heavy Industries lost the offshore contracts to Chinese and Singaporean rivals.

Additionally, the company informed that it would need to decrease current production costs in order to gain competitiveness and secure shipbuilding orders.

The shipyard closure will leave some 5,600 offshore workers redundant, 2,600 of which are regular employees and 3,000 are supplier workforce.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2018 >>
MTWTFSS
27 28 29 30 31 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

CWC World LNG & Gas Series: 10th Asia Pacific Summit

Bringing together the key LNG buyers and sellers from across the globe, the Summit provides…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >

Singapore International Bunkering Conference and Exhibition (SIBCON)

The 20th edition of the Singapore International Bunkering Conference and Exhibition (SIBCON) will be about inspiring change…

read more >