Daewoo Shipbuilding & Marine Engineering (DSME) is to dispose of affiliates that are not related to shipbuilding and offshore plant construction. The shipbuilder also plans to sell its headquarters in Seoul, South Korea.
DSME’s CEO Jung Sung-Leep announced the restructuring at a meeting on 10 August after the shipbuilder posted massive losses in the second quarter of 2015 of KRW1.15 trillion (USD987.14 million).
Currently, DSME’s non-core affiliates include BIDC, a logistics affiliate, Welliv, a hotel and food service provider, FLC, a golf course operator, DeWind, a wind turbine manufacturer, as well as others.
At the meeting, Jung said that the shipbuilder would improve work efficiency and productivity by renewing its way of working, including cutting the outsourcing of the engineering design of plant.
However Jung did not mention any plans to reduce DSME’s workforce. Instead, he said that DSME would slim the structure of the organisation and relocate employees.
“I am disappointed in myself as I have to announce the restructuring plan,” Jung said. “Please regard this as a way to make the better DSME for our juniors. Our restructuring efforts cannot be conducted by being forced. We should reflect on ourselves and undergo the process of restructuring.”