By Lianting Tu and Narae Kim (Bloomberg) -- South Korean shipbuilders aren’t out of the woods yet even as orders begin recovering, with the smaller ones facing collapse in the absence of government support, according to a shipping-debt trader. The government will aid larger shipyards through ways such as giving them orders for the next few years, under its support policy for … [Read more...]
Hyundai Heavy’s $11 Billion Breakup Paves Way for More Deals
By Abhishek Vishnoi and Kyunghee Park (Bloomberg) -- The world’s second-largest shipbuilder has split itself into four companies, a move that would facilitate a potential sale of some of the businesses. Hyundai Heavy Industries Co. started trading as four entities Wednesday as the conglomerate tries to insulate the group from a financial crisis at any one of its divisions. … [Read more...]
Korean Banks Holed Below the Waterline by Shipping Debt
By Christopher Langner (Bloomberg) -- Now, the ship really has sailed. After kicking the can down the waterway for a few years, Korean banks will have to reckon with the debt owed by the nation's shipbuilders, which are among the biggest in the world. They'll need plenty of government help; probably more than has been promised. The state has been tightening pressure on … [Read more...]
Battered Korean Yards Battle Slump With State-Led Overhaul
By Kyunghee Park (Bloomberg) -- The world’s three biggest shipyards, battered by the deepest industry slump in at least two decades, are getting a helping hand -- from the state. South Korea’s government is at the forefront of efforts to revive the shipbuilders, which employ almost 62,000 people, or 1.4 percent of the nation’s manufacturing sector workforce. After … [Read more...]
World’s Top Three Shipyards Submit Plans to Raise $7.3 Billion in Revamp
By Kyunghee Park (Bloomberg) -- The world’s three biggest shipyards plan to raise a combined 8.41 trillion won ($7.3 billion) selling assets as part of a restructuring following losses last year. Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. have submitted their fund-raising plans to their creditors, … [Read more...]