Everywhere you look, ships are being laid up, yards are in trouble and rigs are being stacked.
Even focusing on tankers, I have to wonder if they will survive as the world is awash in oil surpluses. Even more interesing is that Damen just delivered 3 ferries to S.Korea.
Tuesday, 24 November 2015 17:32
South Korean Shipbuilder, STX Offshore and Shipbuilding is taking drastic measures to maintain its survival.
According to emails obtained by the Korea Herald, STX chief executive Lee Byung-mo sent out an email to employees highlighting that business as usual will see the firm collapse by mid-2016.
He indicated that the company intends on reducing expenses by slashing 30 per cent of its workforce, cutting salaries by 10 per cent and fundamentally rearranging the organisational and management structure.
The firm is seeking to redirect its focus on tankers, and intends to withdraw from the offshore and special ship business.
The paper said the shipbuilder has been under pressure form its main creditor, Korea Development Bank to come up with a plan to reduce 50 per cent of fixed expenses in order to avoid court receivership, a form of bankruptcy.