Independent journal on economy and transport policy
11:33 GMT+1
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navalmeccanico group South Korean DSME slowly announces a new one of cost reduction
Decided among other things a reduction until 20% of the amount of the salaries and an ulterior decrease of the number of the top manager
May 31, 2016
The Korea Offshore & Shipbuilding Association (Koshipa), also with all the cautions of the case and emphasizing that nobody is able to preview when the world-wide market of the shipbuilding will record a resumption, consider that the down period of the cycle of the market can be concluded in the course of this year and that in 2016 a radical change of direction already can happen. A decided waited for change of direction spasmodically from the South Korean ship yards that last year have accused a decrease of the -9% of the new orders, come down to 9,6 billion tons of tonnage compensated, and a decided attested contraction of the orderbook to 26,7 million tons of compensated tonnage regarding 32,5 million tslc to end 2014.
If the much attended improvement will not reach shortly, the impact on the exhausted South Korean navalmeccanica industry could be devastating. If friday the shipbuilding society STX Offshore & Shipbuilding Co. mail in controlled administration has asked for being ( on 30 May 2016), today she is the compatriot Daewoo Shipbuilding & Marine Engineering Co. (DSME) has to announce a new one slowly of determined cost reduction in order to tackle to the crisis. To March DSME it had communicated the intention to cut a quarter of the staff ( on 10 March 2016) and today the company has announced to have a determined a reduction until 20% of the amount of the salaries, the imposition of unpaid periods of vacation, ulterior decrease of the number of the top manager, the transfer of the headquarters from Seul to Geoje, in the center of the local ship yard, and the sale of asset of the group, between which some floating docks, with the objective to save about 3.000 billion won (2,5 billion dollars).
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The Korea Offshore & Shipbuilding Association (Koshipa), also with all the cautions of the case and emphasizing that nobody is able to preview when the world-wide market of the shipbuilding will record a resumption, consider that the down period of the cycle of the market can be concluded in the course of this year and that in 2016 a radical change of direction already can happen. A decided waited for change of direction spasmodically from the South Korean ship yards that last year have accused a decrease of the -9% of the new orders, come down to 9,6 billion tons of tonnage compensated, and a decided attested contraction of the orderbook to 26,7 million tons of compensated tonnage regarding 32,5 million tslc to end 2014.
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
