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.