Published : Aug. 22, 2016 - 13:03
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THE INVESTOR] McKinsey Korea, which is due to publish an assessment report on South Korea’s three largest shipbuilders, has concluded the trio can stay afloat without merging into one another, according to local newspaper the Korea Economic Daily on Aug. 22.
The consulting firm reportedly reasoned it is the best to maintain the three shipyards’ operations separately as the debt-ridden
Daewoo Shipbuilding & Marine Engineering’s competitiveness is not lagging behind those of its other two peers
Hyundai Heavy Industries and
Samsung Heavy Industries.
This is in stark contrast to industry watchers who have believed the financially troubled DSME should be merged into either of the other two shipbuilders.
The three shipyards should halve their production capacity by 2020 as global orders for ships are likely to drop sharply, according to McKinsey’s analysis.
It is also said to recommend DSME to carry out the sales of its defense unit in the report.
McKinsey is set to submit the report to the chief executives of the three shipyards later this month.
The assessment, commissioned by the shipyards, will be a guideline to the revamp of the shipbuilding industry that has been struggling with huge losses stemming from the delivery of low-price ships and low demand.
By Park Han-na (
hnpark@heraldcorp.com)