By MarEx 2015-09-01 16:11:43
Samsung Heavy Industries has signed a deal to take over management of financially troubled Sungdong Shipbuilding & Marine Engineering. The agreement is for four years with an option for three additional years. Samsung will take over Sungdong’s purchases, sales, production and technology while Korea Eximbank will operate the shipyard’s finances, human resources and labor management divisions.
Sungdong is a mid-sized shipbuilder and has experienced a shortage of operating funds. In May, it was reported that Sungdong was seeking $385 million from Korean creditors to fund operations and pay its employees.
Samsung Heavy has focused on offshore investments, LNG and megaships but is seeking to diversify its assets after posting a $1.2 billion Q2 loss. Samsung has attributed the losses to delayed construction of oil and gas fields as it attempted to challenge China’s shipyards.