[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Woo-kwon] Gyeongsangnam-do announced on the 30th that HSG Heavy Industries will pay the remaining 180 billion KRW of the acquisition contract to the court and become the new owner of Sungdong Shipbuilding & Marine after the stakeholders' meeting on the 31st.
Sungdong Shipbuilding & Marine halted factory operations and about 500 workers went on unpaid leave after entering court rehabilitation procedures in April 2018. Despite difficulties due to three failed sales attempts, the consortium of HSG Heavy Industries and Curious Partners officially participated in the sale, signing the main contract last December and resuming operations from April 1.
To successfully promote the sale of Sungdong Shipbuilding & Marine, Gyeongnam Province formed the 'Public-Private Council for the Development of Gyeongnam Shipbuilding Industry' chaired by Governor Kim Kyung-soo, proposed extending the support period for employment maintenance subsidies for unpaid leave workers, and visited Changwon District Court and the Export-Import Bank to request cooperation for smooth progress of the sale. Administrative support has been focused on maintaining workers' employment and revitalizing the local economy.
Gyeongnam Province expects that the resumption of Sungdong Shipbuilding & Marine will serve as an opportunity to reactivate medium-sized shipyards along with STX Shipbuilding & Marine. Accordingly, to improve productivity and competitiveness of small and medium-sized shipyards, support will be provided to smarten existing yards, strengthen domestic and international marketing support for smooth order activities, enhance medium-sized ship design competitiveness, and actively support projects for training production specialists.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
