Hyundai Heavy Industries reportedly exiting offshore plant construction

Hyundai Heavy Industries reportedly exiting offshore plant construction

In a huge change of direction for the world’s largest shipbuilder, local media in South Korea is reporting under pressure Hyundai Heavy Industries (HHI) has decided to ditch offshore plant construction.

“Stick to your knitting,” the current darling of the tanker trades, Paddy Rodgers, ceo of Euronav, regularly reminds his peers. Going back to basics is something HHI also looks keen to do too.

HHI, which has just been forced to enter restructuring largely on the back of an ill-timed massive expansion into the offshore construction business, is now downsizing its offshore plant department with a view to exiting the sector all together, multiple Korean media outlets are reporting. However, HHI has today claimed, in a release, that it does not intend to entirely exit the sector.

HHI, along with other leading Korean yards, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME) have all been badly burny from the falling oil price and all have entered restructuring.

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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