HHI Marks Drop in New Orders
- Business & Finance
South Korean shipbuilder Hyundai Heavy Industries (HHI) saw nearly 50% less in new orders in the first two months of 2015 compared to the same period last year.
HHI recorded USD 2.18 billion in new orders in January and February this year, compared to USD 4.3bn added to the orderbook in the first two months of 2014.
The shipbuilding sector marked a 77% decrease in newbuild orders for the period, from 2.68bn in 2014, to USD 609 million in 2015.
The slide can be seen as a continuation of HHI’s struggles started in 2014, which the company with a KRW 2.21 trillion loss (USD 2bn).
The dismal results were chalked off to a growing competition from Chinese shipbuilders and a slumping demand from European owners, in addition to falling of oil prices. HHI also saw its first strike in 18 years in 2014.
The shipbuilding conglomerate has resorted to restructuring measures that saw lay-offs and closing of unprofitable business branches, such as those engaged in renewables, so as to steer back to profit.
World Maritime News Staff