DSME on track to sell subsidiaries

[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering is speeding up sales of nonessential subsidiaries, recently naming law and accounting firms to oversee related processes.

The move is part of the company’s revival plans under which 14 subsidiaries will be sold, as well as its production capacity being cut by about 30 percent.

According to reports, DSME recently selected accounting firm EY Han Young to oversee the sale of its Chinese subsidiary DSME Shandong. The ailing shipbuilder also chose Samjong KPMG and the law firm Bae, Kim and Lee for the sale of Welliv and DSEC. 

DSME Shandong produces parts for ships and industrial plants that recorded sales of 216 billion won (US$197.5 million), and 18.8 billion won net profit for 2015. Industry watchers expect DSME to focus on China-based buyers in selling DSME Shandong.

DESC specializes in ship architecture. The company posted sales of 488.4 billion won and operating loss of 70 billion won last year. Welliv is a catering subsidiary that posted sales and operating profit of 221.7 billion won and 12.6 billion won, respectively, last year.

By Choi He-suk (cheesuk@heraldcorp.com)