STX yard slashes 30% of workforce

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.

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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