Greater China

STX Dalian to lay off 10,000 employees

Dalian: STX Dalian Group, the bankrupt subsidiary shipyard of Korea’s STX Corporation, is going to lay off about 10,000 employees at the end of this month.

According to an internal notice, the shipyard will pay off insurance owed to the employees this month, while all salary and housing funds, which is in arrears, won’t be paid to the employees until June 2015. STX Dalian suspended operations in April 2013, but most of the employees still have contracts with the shipyard.

Dalian Intermediate People’s Court is handling the shipyard’s restructuring. A recent creditors’ meeting showed that the shipyard had a total unpaid salary, insurance and housing amount of RMB480m. Total liabilities of the shipyard stands at around RMB20bn. [10/11/14]

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