Hyundai Mipo Dockyard Closing a Dock amid Work Shortage

Amid poor ordering activity and accompanying work shortage, South Korean shipbuilder Hyundai Mipo Dockyard will be closing a dock in Ulsan for three months to save money, the Korean daily Pulse informed.

The dock number four, the smallest of the shipyard’s four units with 350,000DWT capacity, is said to have been idle since August 17 when the yard completed its last vessel on order.

Full operation is expected to resume in December when construction on a RORO ship is scheduled to commence, the daily reported citing a company official.

Furthermore, the shipyard is said to be in talks with its union on a proposal for workers to take unpaid leave in order to cut costs amid insufficient workload. A similar proposal has been made by the company’s parent builder Hyundai Heavy Industries (HHI) which has been faced with over 5,000 of idle workers.

In June this year, Hyundai Mipo launched negotiations with workers on a collective wage deal.

“In the face of a dire situation where the workload is rapidly shrinking, we should stand united. If management and labor join forces together, we believe we can lay a solid foundation for take-off,”  Young-seuk Han, President and CEO of HMD said on the occasion.

The announcement on the dock shutdown comes on the heels of an order for the construction of four bulk carriers from Bahri worth USD 120 million.

The bulkers are scheduled for delivery during the first half of 2020.

World Maritime News Staff