SEOUL, Dec. 2 (Korea Bizwire) – Daewoo Shipbuilding & Marine Engineering Co., a major shipyard here, said Friday that it plans to spin off its IT business unit next year in an effort to streamline its business structure.
The unit, tentatively named DSME Information System, will be launched on Jan. 1, the shipbuilder said. The company will manage Daewoo Shipbuilding’s IT system and related tasks with some 150 employees, it said.
The planned spinoff is part of the shipyard’s restructuring schemes which include asset sales and a reduction in workforce.
Last month, Daewoo Shipbuilding said it would secure an additional 700 billion won through asset sales, raising the total amount prepared as part of its self-rescue measures to 6 trillion won.
The shipyard aims to reduce the number of its employees by some 20 percent to 10,000 by the end of this year.
Daewoo Shipbuilding is again receiving early retirement applications from its employees following the reduction of some 1,000 workers in October. Eligible for the application are employees who have worked for more than five years at the shipyard, according to industry sources.
South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.