Just when the future seemed a bit brighter for Hyundai, the worlds largest shipbuilder, the yard has become embroiled with their notoriously militant union as the latter fights to preserve the pay packets of the yards employees. HHI’s rationalization program has seen then close yards, moth-ball some drydocks and release thousands of workers and has been warning of further pay cuts for remaining workers. The union claims that the yard has received orders to build 62 new vessels totaling $3.6bn this year and have dismissed the yards gloomy projections for the remainder of 2017. HHI workers went on strike in [...]
The new South Korean Finance Minister has stated that he will seek to reorganize the domestic shipbuilding industry through mergers and acquisitions and will push to have just two dominant shipyards—the “Big Two” system. This suggests that struggling DSME could be taken over by either Hyundai or Samsung by the end of 2018. All three are currently being restructured with DSME in the process of implementing its self rescue plan following a second rescue package was approved in April requiring further cost cuts and job losses.
Seadrill have reached a settlement agreement with Hyundai Shipyard over the UDW semi West Mira and have been paid $170m in cash as full settlement of the dispute that went to arbitration in 2015 after they had cancelled the construction contract. As part of the settlement Northern Drilling, an asset holding company related to John Fredriksen, who have purchased the rig from Hyundai. Seadrill is likely to manage the rig once it becomes operational and will have first right of refusal to purchase the rig from Northern.