SPP employees warn yard could close from lack of orders

SPP Shipbuilding, one of the world’s leading builders of MR tankers, could close by the end of next year unless its creditors allow it to take on orders. Management at the yard, which has been under a debt workout scheme for the past couple of years, has appealed to its creditors to allow it to receive new orders.

In a written statement, SPP employees claimed: “Since 2014, the company has received no new orders due to the control of creditors. The yard’s operation rate will be only 50% by H1 next year and the company will have to close the yard by the end of the year.”

The yard’s employees added: “SPP Shipbuilding has specialised in MR tankers and is in the world’s top 10 for competitiveness in this sector. The company has a strong chance for revival.”

SPP has managed to return to profit in the first half of this year.

Samil PricewaterhouseCoopers-Samsung Securities has been selected by SPP’s main creditor, Woori Bank, as a coordinator to manage the sale of SPP.

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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