[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] STX Shipbuilding & Marine Engineering has overcome difficulties such as restructuring and has officially started its leap toward becoming a global mid-sized shipyard.
On the 8th, Gyeongnam Province announced that it signed an agreement for the normalization of STX Shipbuilding & Marine Engineering with the labor and management of STX Shipbuilding & Marine Engineering, Changwon City, investor UAMCO, and KHI at the provincial government meeting room.
The signing ceremony was attended by Kim Kyung-soo, Governor of Gyeongnam Province; Heo Seong-moo, Mayor of Changwon; Kim Seok-min, CEO of UAMCO; Kim Kwang-ho, Chairman of KHI; and Jang Yoon-geun, CEO of STX Shipbuilding & Marine Engineering.
In the agreement, the labor and management of STX Shipbuilding & Marine Engineering promised to establish a stable labor-management relationship, and the investors pledged to promptly complete ongoing investments and faithfully fulfill investment contracts.
Gyeongnam Province and Changwon City agreed to cooperate in efforts to stabilize employment and foster an eco-friendly shipbuilding industry. As a result, STX Shipbuilding & Marine Engineering was able to lay the foundation for normalization.
Until now, STX Shipbuilding & Marine Engineering had faced difficulties due to the shipbuilding industry downturn, was delisted in 2014, and entered court receivership in 2016.
During the restructuring process led by creditors, labor and management went through difficult times including asset sales, workforce reductions, and cyclical unpaid leave.
In response, the labor and management of STX Shipbuilding & Marine Engineering, Gyeongnam Province, and Changwon City signed a tripartite win-win agreement in July last year to attract investment for business normalization and employment maintenance.
As a result, in January, they signed an investment attraction contract worth 250 billion KRW with the UAMCO-KHI consortium, resolving management uncertainties and improving financial soundness, raising expectations for business normalization and employment stability.
Although STX Shipbuilding & Marine Engineering only secured three orders last year, if it focuses its order activities on its main ship types such as mid-sized petrochemical product carriers and small to mid-sized gas carriers, normalization is expected to be possible through securing additional orders.
Kim Kyung-soo, Governor of Gyeongnam Province, said, "The shipbuilding industry is directly linked to the Gyeongnam economy, and if it continues to fluctuate depending on economic conditions or the market as it is now, the residents will also suffer together. We are continuously discussing fundamental measures with the government to ensure the stable maintenance of the shipbuilding industry, and the local government will also actively support it."
Heo Seong-moo, Mayor of Changwon, stated, "We will do our best to resolve the employment crisis in Jinhae-gu, achieve the early normalization of STX Shipbuilding & Marine Engineering, and revive the economy of the Jinhae area."
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