Samsung Heavy Industries is further cutting back capacity at its main facility on the island of Geoje in the far south of South Korea. Sources tell Yonhap, the nation’s top newswire, that Samsung Heavy is readying to mothball a floating drydock to go alongside another landside drydock it has already shuttered this year in the wake of a weakened orderbook. Further drydocks could also be suspended, Yonhap reported. Other Korean major yards have taken similar action in the past months as the reality of a depressed future outlook for new ships settles in.
Samsung Heavy, as part of its restructuring plans, is mid-way through a huge layoff of staff that will see its headcount down by 5,000 by the end of 2018.
Nevertheless, prospects are finally picking up for Samsung Heavy with a solid first half in terms of new orders meaning it is well on track to hit its annual sales target of $6.5bn.