The ceo of Daewoo Shipbuilding & Marine Engineering (DSME) will announce further restructuring efforts this week as the yard fights for survival. Jung Sung-Leep has told his employees to expect more job cuts a pay freeze and some drydocks to be mothballed.
“To convince the government, our creditors and the public, more thorough and harsher efforts need to be addressed through our self-rehabilitation plan in an effort to normalize management,” Jung said.
DSME announced last year plans to lay off around 2,300 staff through to 2019, a figure that is now expected to climb.
“We planned to resolve the liquidity crisis by securing a certain level of orders, but it seems that there’s a slim chance of seeing new orders in offshore plants and vessels,” Jung said. DSME has won orders for just two suezmax tankers all year.
