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Sungdong on the verge of liquidation

Sungdong on the verge of liquidation

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Sungdong Shipbuilding & Marine Engineering from South Korea, once upon a time a top 10 yard globally, now stands on the brink of liquidation.

The yard’s accountants have published a report this week that states creditors can get more money from liquidating Sungdong rather than keeping it going as an ongoing concern.

The government is likely to make a ruling on Sungdong’s future within the next two weeks.

Already 90% of its workforce has been cut as orders have dried up.

In May this year Sungdong won its first order since December 2015 with Greece’s Kyklades Maritime linked with a big aframax order, putting pen to paper for five firm plus two options of 115,000 dwt tankers. The price per ship was reported as $44m. These orders will disappear if Sungdong is shuttered.

Sungdong, started out as an equipment manufacturer, then a block builder, before moving into shipbuilding in 2004, pioneering onland construction and becoming a global top 10 yard before tough times hit. It has been in a debt workout scheme for most of this decade.

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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.

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