SEOUL, Aug. 31 (Korea Bizwire) — Daewoo Shipbuilding & Marine Engineering, South Korea’s No. 2 shipbuilder, is pushing for a massive restructuring drive next month, including the sale of assets worth up to 400 billion won (US$339.1 million), as it struggles to recover from huge losses, industry sources said Monday.
Assets likely to be sold off include two office buildings in Seoul and a golf course just outside the capital city, according to the sources.
The shipyard will also downsize its operations by shedding 30 percent of its teams and workforce, including general managers and other high-level officials.
In line with the restructuring move, executive-level officials are planning to return some of their wages starting in September, the sources said.
Last month, the shipbuilder cut the number of executives at its head office by 11 to 44.
It is the first time since its foundation that Daewoo Shipbuilding & Marine Engineering has embarked on a large-scale restructuring program.
In the second quarter, the shipyard posted a record loss due to increased costs from a delay in the construction of low-priced ships and offshore facilities.
Net loss stood at 2.39 trillion won in the April-June period, a sharp turnaround from a 76 billion-won profit during the same period a year earlier. Operating loss came to 3.03 trillion won, while sales plummeted 63 percent to 1.66 trillion won in the last quarter.
In the first half of the year, the firm posted a net loss of 2.56 trillion won, with its operating loss reaching 3.08 trillion won.