South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering (DSME) is heading into a round of massive restructuring to trim down losses, DSME’s new head Jung Sung-leep announced.
As a result, the new chief executive and president said the shipbuilder would focus on core business and dispose of six poor performing subsidiaries, including wind turbine manufacturer DeWind, DSME Trenton, Daewoo Mangalia Heavy Industries (DMHI), in Romania, Daewoo Shandong Shipbuilding Co. (DSSC) in China, DSME Construction and Future Leadership Center, the Korea Herald reports.
The core businesses include merchant vessels, specialized vessels, and offshore plant sectors, Jung said.
However, DSME Trenton said it was not aware of such plans.
Doubts have been raised about the ability to sell shipyards in Romania and China during Jung’s term, as the respective governments hold 49% stake in the said businesses.
The decision comes as the shipbuilder records operating loss of USD 39 million amid stagnation in the merchant fleet market and the offshore plant market following downturn in oil prices.
World Maritime News Staff