DSME issues revised restructuring plan

Financially troubled Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) is looking sell its subsidiary yard in Shandong, China, as part of its self-rescue plan.

DSME submitted a new self-rescue plan to its creditors with proposals for further payrolls cuts and facility closures. The yard also plans to sell its subsidiary yard in Romania.

The overseas assets sales were requested by the shipyard’s major creditor Korea Development Bank.

DSME Shandong (DSSC), a fully owned subsidiary of DSME, was established in 2007 and mainly builds ship blocks. DSSC made a profit a KRW18.8bn ($15m) in 2015 and is one of the most profitable overseas assets of DSME.

DSME also announced Friday that it has agreed with Sovcomflot to delay the delivery of the first Arc7 ice-class Arctic LNG carrier for the Yamal LNG project.

Delivery was scheduled for June 30, but has been pushed back to January 31, 2017.

DSME’s Romanian subsidiary Daewoo Mangalia Heavy Industries, meanwhile, is expected to be converted into a repair site. The yard, Romania’s largest, will shift to repair when its orderbook runs out shortly. DSME is looking for buyers for that yard too.

DSME also outlined plans for job and wage cuts across its facilities as well as cutting back output.


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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