Big Three Korean Yards Face Recession



The big three Korean yards, plan to lay off about 3000 employees following the financial loss in the Q2, 2015.

The loss reported are as follows:

Daewoo Shipping and Marine Engineering(DSME)$ 2 Billion.
Hyundai Heavy Industries(HHI) $2.5 Billion.
Samsung Heavy Industries(SHI)$1.2 Billion.

As a result, about 13 employees of DSME have resigned, which includes its CEO Ko Jae Ho.  The resignation of the CEO has no impact on the seven-member board.  The company is accepting voluntary resignations.  It is said that the company is advising others to resign.  By the end of 2016, the company will release about 1300 senior management staff.  The company intends to sell its non-core assets for improving its shipbuilding competition.

In 2014, HHI released 31% of its senior management staff and in July 2015, it replaced 25 executives.  The delay in construction of oil and gas rigs are mentioned to be the reason for the loss.

Source: IHS Maritime 360