800 staff face the axe at troubled STX yard

800 staff face the axe at troubled STX yard

Financially troubled STX Offshore & Shipbuilding (STX O&S) will slash 800 staff, roughly 30% of its approximate 2,600 workforce, as well as cutting all salaries by 10%.

Once the world’s fourth largest shipbuilder, STX O&S finds itself on the brink of court receivership. The firm’s ceo Lee Byung-mo warned in a leaked email to staff last week: “Maintaining the current management system will lead to the firm’s collapse within the first half of 2016.”

STX O&S suffered an operating loss of KRW26.5bn ($22.7m) in the first half of this year. Lead creditor Korea Development Bank has told the yard it must come up with a plan to reduce 50% of fixed expenses or else head into court receivership.

STX O&S will focus on series production of product tankers in the future, if it survives.

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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