STX Offshore and Shipbuilding fighting for survival

[JK]

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.

[The Dieselduck]

Yes, many signs pointing to a sever slumping world economy.

Fastream is saying that 2016 we will see unemployed seafarer on the beach, something that hasn't been seen in years. Countless ships in Oil and Gas are laid up right now, huge amount of box ship laid up too, the Baltic Dry index hits its lowest points ever, and tankers full of diesel are anchored waiting for buyers in Houston. It doesn't look good from where I'm standing.