Struggling South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has closed its metal fabrication facility in Canada as part of its ongoing restructuring exercise.
The facility, which opened in Nova Scotia in 2011, and mainly focused on metal fabrication for wind turbines, is one of a number of overseas holdings DSME is willing to offload to keep creditors at bay.
Nova Scotia, which has a 49% in DSME Trenton, will file for receivership proceedings, while also looking for investors to take over the loss making entity.
Up next on the chopping block for the slimlining Korean shipbuilder is likely to be Romania’s largest shipyard, DSME Mangalia. The government in Bucharest is likely to come under pressure to find a rescue package for that yard and its workers.