Labor, Management, Municipalities Pull Together to Rescue Shipbuilding Industry | Be Korea-savvy

Labor, Management, Municipalities Pull Together to Rescue Shipbuilding Industry

(Photo -Korea Bizwire)

(Photo -Korea Bizwire)

GEOJE, March 7 (Korea Bizwire) Companies, labor unions and municipalities are joining forces in a bid to revive a struggling industry and win orders for large shipyards in Geoje, South Gyeongsang Province. 

According to shipbuilding industry watchers and Geoje on Mar 6, Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries, which suffered a severe drop in orders last year, have been playing a crucial role in the rejuvenation of the sector with the recent resumption of shipbuilding orders.

Shipyard labor unions, which suffered greatly from the ‘order cliff’, have also been active, and said that they would do everything in their power to help win orders. Local governments are also playing an important role.

DSME, which is suffering from a financial “crisis” due to a lack of liquidity, announced on March 2 that it won two orders for LNG carriers of 173,400 cubic meters from European ship owners, amounting to 414.4 billion won.

The company, one of the “Big Three” shipbuilders in South Korea, has been working on new attracting new orders this year.

DSME’s union is also strengthening its efforts, taking the uncommon approach of cooperating with management in any way that might assist with the company’s order-taking activities.

Samsung Heavy Industries, meanwhile, is leaving no stone unturned in its travels around the globe to win orders.

Geoje’s municipal government has also been instrumental in the efforts of DSME and Samsung Engineering.

Kwon Min-ho, the mayor of the Geoje, said, “We will run to order-taking negotiations at any time if there is a role for the city to play in winning shipbuilding orders.”

The city will also actively pursue plans to establish a sisterhood relationship with the city of Athens, where ship owners are flocking.

“The global shipbuilding market will gradually recover due to rising oil prices and the ban on the use of Bunker C oil,” said a shipbuilding official.”, “It is meaningful for labor and local governments to cooperate with industry, and I look forward to positive results.”

Ayn Lee (

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