Tanker Firm Frontline Keeps Barstad as Permanent CEO
.”Frontline, which specializes in the transport of oil crude oil and refined products, owns and operates a large fleet of vessels within the VLCC, Suezmax, and Aframax/LR2.In May this year, Frontline agreed to acquire six very large crude carrier (VLCC) newbuilds under construction at the Hyundai Heavy Industries shipyard in South Korea, for $565.8 million.The ships are designed to operate on different fuels, including biofuel, and have the potential to be converted or retrofitted to run on fuels such as liquefied natural gas (LNG) or ammonia, and consequently, there is an ability to cut CO2 emissions
5K Workers Lose Jobs in Korean Shipyards
According to a report by Korea Economic Daily the number of workers who left Korea's top-three shipbuilding companies - Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering - in the first half of this year is estimated at around 5,000. As the shipbuilding industry was hit by global oversupply and lack of demand the country’s shipyards were forced to decrease their workforce as they launched drastic restructuring measures in an effort to return to liquidity. As a result of the shipyards' top-to-bottom restructuring, caused by
Massive Layoff Ahead for Hyundai Heavy
Another massive reduction in the Korean shipbuilding workforce may come as most shipyards are still struggling with falling orders and mounting losses, reports Yonhap quoting industry sources. Hyundai Heavy Industries plans for large layoffs amid a prolonged recession in the global shipbuilding sector and the government’s move to restructure the ailing industry. Over the past few weeks, the troubled world’s No. 1 shipbuilder is rumored to be planning an additional cut of 3,000 employees -- most likely from its production line -- in the form of voluntary
Hyundai Merges Offshore and Plant Divisions
To improve efficiency Korea’s Hyundai Heavy Industries (HHI) announced its intention to merge its plant division into the offshore business. The world's biggest shipbuilder said that they will take place after current projects are completed. HHI has been hit by its first strikes in 20 years over pay and it has already closed and combined a number of units as it seeks to turn around losses. The shipbuilder is also planning to seek voluntary retirement for 1,500 workers among its 28,000 staff as part of its more cost-cutting measures to boost its fortunes. The
Wage Negotiations Conclude at Hyundai Heavy
Hyundai Heavy Industries (HHI) announced today that its management and labor union concluded the negotiation on the wage and collective bargaining agreement for the year 2014. According to the tentative agreement, HHI employees would receive a basic pay of 37,000 won, a 2 percent increase; a one-off bonus of two million won plus company shares equal to 150 percent of their pay; 10,000 won increase in their “job environment allowance”; 200,000 won gift card; 700% bonus as included in their ordinary wage and a special leave on February 23, 2015. The tentative
Hyundai Heavy Plummets to Worse Loss Ever
South Korea's Hyundai Heavy Industries Co Ltd, the world's biggest shipbuilder, slid to a record quarterly loss of $1.8 billion and warned it's heading for its worst-ever year as cost overruns mount up in new business lines it developed to counter a global glut of low-margin ship orders. Hyundai Heavy said on Thursday it slumped to an operating loss of 1.93 trillion won ($1.83 billion) in the third quarter, from a 222.4 billion won profit a year earlier, as it soaked up rising costs caused by delays in building new types of ship in which it had little previous expertise. It expects an operating
