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 integration will help the company cut its costs through the bulk purchase of components and materials and raise efficiency in production, the shipbuilder said.
At present, Hyundai Heavy Industries is divided into seven business units engaged in shipbuilding, marine business, plant construction, electric and electronic system business, construction equipment, engines and machinery, and green energy.
As of the end of September last year, 3,631 and 1,423 employees were working for the marine and plant business units respectively. The company’s plan is to consolidate the plant division, which has recorded losses for years, with the marine business division for higher profitability.
In October, Hyundai Heavy set up a new sales headquarters, merging its sales division with those at the two affiliates.
