Ailing STX Offshore & Shipbuilding, whose restructuring plan is thought to have won it KRW450bn in new breathing space from creditors, has set about axing staff.
STX, once the world’s fourth largest shipbuilder, has slashed 30% of its staff this month and is seeking further voluntary redundancies as it fights for survival. Voluntary redundancy comes with eight months wages.
Key creditor Korea Development Bank is expected to hand STX a stay of execution with a big cash injection as early as this week.
Among STX’s promises in its restructuring plan is a hefty scale back in output and staff and a focus on serial construction of product and chemical carriers – a return to its roots of more than a decade ago.