Reprieve for STX

While other Korean yards have gone to the wall this year, STX Offshore & Shipbuilding looks set for a reprieve.

Once the world’s fourth largest shipbuilder STX has been brought low largely by the antics of Kang Duk-soo, the founder of the STX Group who was jailed for corruption.

Creditors have now decided, local media report, that the yard is worth keeping rather than liquidating its assets. Creditors have been pouring over STX’s rehabilitation plans and are likely to give the yard a stay of execution next week.

Creditors believe the value of keeping STX running is higher than its liquidation value. STX’s rehabilitation plan includes axing 30% of its staff, reducing all wages by 10% and focusing on serial construction of product tankers.

Other parts of STX’s shipbuilding empire, such as its huge yard in Dalian, China, are under auction.

ShinaSB, once a big name in product and chemical carrier construction, became the latest Korean yard to be liquidated this week.

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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