South Korean shipbuilding giant Hyundai Heavy Industries (HHI) has revealed plans to integrate overlapping roles and responsibilities across HHI and its shipbuilding affiliates, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries.
The move comes within the conglomerate’s drive to realign the business.
HHI recently identified four areas of overlap for phase one of functional integration, namely, finance, accounting, IT and public relations. The shipbuilder said that, going forward, the scope of business coordination would eventually expand into other functions as well as to other affiliates under the HHI group.
“The business realignment is geared toward achieving increased synergy among affiliates by minimizing redundant investment, enhancing coordination and ensuring efficiency in HR management, ” HHI said.
HHI posted nearly 50% less in new orders in the first two months of 2015 compared to the same period last year.
The group’s shipbuilding sector marked a 77% decrease in newbuild orders for the period, from 2.68bn in 2014, to USD 609 million in 2015.
The dismal results were chalked off to a growing competition from Chinese shipbuilders and a slumping demand from European owners, in addition to falling of oil prices.
The shipbuilding conglomerate has resorted to restructuring measures that saw lay-offs and closing of unprofitable business branches, such as those engaged in renewables, so as to steer back to profit.