AsiaShipyards

Court to decide STX yard’s fate

STX Offshore & Shipbuilding officially filed an application in Seoul for court receivership late on Friday. The court will now decide whether to liquidate the yard or give it a shot at restructuring.

The shipbuilder said it had debts of $600m. Its orderbook stretches through to mid-2017. Creditors have pumped more than $3bn into the yard over the past three years.

A subsidiary, Goseong Offshore & Shipbuilding, is expected to head for court receivership early next month too.

Speaking to the Maeil Business Newspaper over the weekend, Lee Byung-mo, ceo of STX Offshore & Shipbuilding, urged Korean yards to collaborate more in order to survive.

“The local shipbuilding industry grew too fast over a short period of time. Manpower was not sufficiently skilled and oversight was lax,” Lee said.

All of South Korea’s largest shipyards are now going through restructuring while a number of smaller ones have folded amidst a huge downturn in ordering activity.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Comments

  1. Lee is only looking to pass the blame to the workforce.
    a full order book for yrs . ??
    no corruption at the highest level in their management.

Back to top button