Small-and-medium shipyards in South Gyeongsang province in Korea are pommeled by severe global shipbuilding market depression.
According to a governmental report by Gyeongnam Development Institute, small-and-medium sized shipyards in South Gyeongsang are facing Work Out or bankruptcy crisis and marine equipment makers close down the business one by one.
During the first half of this year, only 14 vessels were contracted by S&M shipbuilders in Korea, plummeted by 72% year-on-year.
SPP Shipbuilding and Sungdong Shipbuilding & Marine Engineering based in South Gyeongsang are standing on orders up to the next couple of years, however, they are strongly demanded by their creditor groups to go through restructuring.
In case of ShinaSB Yard, it will see the bottom of orderbook, after its final newbuilding chemical carrier, now under construction, is delivered, if it is unable to book another order.
There is rumor that 21st Century Shipbuilding will be driven out of business, while Samho Shipbuilding already filed for bankruptcy this year.
Published : October 17, 2012
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