The world’s largest shipbuilder is making plenty of changes as it fights to get through the downturn. Senior management at Hyundai Heavy Industries (HHI) has just been shuffled ahead of the disposal of plenty of non-core businesses and an inevitable another swathe of redundancies.
Kang Hwan-Goo, CEO of Hyundai Mipo Dockyard, is taking on the role of CEO and President of HHI. Kang has been with HHI since 1979.
Choi Kil-Sun has relinquished his ceo title but remains as chairman of HHI. He will focus on the normalisation of the group’s three yards.
HHI, which like all leading Korean yards is going through a massive restructuring as new orders have dried up, is preparing to spin off all its non-shipbuilding businesses – these divisions, worth a combined $5bn, include construction equipment and electronic systems.
HHI, which let go of 3,000 staff last year, is preparing to axe another 4,300 employees as well as slimming down its senior management structure.
HHI is also preparing to mothball drydocks as it faces reduced demand for its shipbuilding expertise.
The group has the capabilities to work on up to 80 ships at any given time, but it is currently working at far less than full capacity. In the first half of the year HHI managed to secure orders for just two ships.
