Hyundai Heavy Industries (HHI) is not finding it at all easy in its pursuit of compatriot yard Daewoo Shipbuilding & Marine Engineering (DSME).
Continued strikes and protests at both yards have made headlines in recent months since Seoul gave HHI its blessing to take over DSME.
Last week despite violent scuffles, HHI shareholders voted in favour of splitting the group into a holding company and its shipyard operations as part of plans to press ahead with the DSME takeover, a merger that would create a super yard, unparalleled in modern shipbuilding history with a 21.2% global market share.
HHI has now run into its latest hurdle regarding DSME with an inspection team of 20 HHI officials due to carry out due diligence of DSME this week barred from entry to the yard. DSME union members barred the inspection team at six different entries to the shipyard yesterday and are doing the same again today. The inspection team are on Geoje island where DSME’s main yard is based through to June 14 with workers vowing to bar their entry.
Workers are worried that the merger between the two giant shipbuilders will result in more job cuts. More than 30,000 people have been laid off at both yards over the last four years.