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DSME closes Canadian subsidiary

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.

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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