Sungdong Shipbuilding seeks new owners

Sungdong Shipbuilding, once one of the world’s ten largest shipbuilders, has set out to seek new owners.

The bankruptcy department of the Changwon District Court has selected Samil Accounting Corporation as its chief sales officer and is now in the process of selling the yard. The yard’s largest shareholder is state-owned Export-Import Bank.

A report from accounting firm Samjong KPMG earlier this year stated that Sungdong would be unlikely to survive even if it slashed its workforce by 40% and received KRW2trn in financial aid.

Last month Sungdong lost its last newbuild contracts with Kyklades Maritime of Greece nixing a contract for five aframax tankers.

The future of Sungdong, which grew from block manufacturer to become a major shipbuilder a decade ago, is still very much in doubt. The government favours making it a repair and block building site while creditors have suggested the yard’s liquidation value is now much higher than keeping it going.

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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