HHI's on-site inspection of DSME fails due to union's strong opposition
HHI's on-site inspection of DSME fails due to union's strong opposition
  • Jung Jun-ho
  • 승인 2019.06.04 11:42
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The on-site inspection of Hyundai Heavy Industries (HHI), which acquired Daewoo Shipbuilding & Marine Engineering (DSME), has hit a snag from the start.

The inspection team of about 20 people, including officials from HHI and the Korea Development Bank, arrived in front of the shipyard at 9:20 a.m. on June 3, but union members blocked six entrances to the shipyard and were unable to enter.

The inspection team plan to conduct on-site inspections of shipbuilding, marine and special vessels, and check property, plant and equipment, and meet with company officials at Okpo Shipyard from June 3 through 14.

The inspection team asked the union to talk, but the union said it would not contact them unless the sale was withdrawn.

Under the split-up plan, Korea's largest shipbuilder will be divided into Korea Shipbuilding & Offshore Engineering, a sub-holding company merging parts of HHI with Daewoo Shipbuilding & Marine Engineering (DSME), which will carry out shipbuilding and offshore businesses, and a reorganized HHI. 

The management says it is aimed at acquiring DSME, but the labor union is concerned about the possible "restructuring" and some say, "Isn't it part of the chaebol succession process?'

In fact, it seems that there are many mountains to go before the HHI's acquisition of DSME.

Under the plan, Korea Shipbuilding & Offshore Engineering is in charge of investment, research and development, and controls HHI's production sector. And it plans to take over DSME as a subsidiary.


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