Orders at Hyundai Heavy nosedive

South Korean shipbuilding major Hyundai Heavy Industries (HHI) added USD4.1 billion worth of new orders to its orderbook in the first half of 2016, a 44.4% drop compared to the results for the same period a year earlier when the company recorded close to USD 7.4 billion worth of new orders.

HHI’s shipbuilding sector received nearly 69% less orders in the first six months of 2016 compared to the same period in 2015. New orders in the first six months of the current year amounted to USD992 million, as compared to around USD3.2 billion reported in the first half of 2015.

The shipbuilder’s offshore sector also suffered in the period, with the orders being more than halved compared to 1H 2015, from USD888 million to USD417 million.

The bleak interim report comes as the company’s unionized workers teamed up with workers from seven other shipbuilding companies to organize a joint industrial action against self-restructuring measures that are to be carried out throughout the industry.

HHI plans to implement a USD3 billion self-rescue plan which includes the sale of its shares of Hyundai Motor and KCC, its stakes in Hyundai Avancis, and certain properties and receivables.

The shipbuilder also plans to make further savings with employee salary cuts and work-sharing.

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