The world’s largest shipbuilder Hyundai Heavy Industries closes another dock at its Ulsan shipyard. The finance-troubled company will close Dock 5, which is traditionally used for building tankers and has length of 380 m, width of 65 m with a capacity to roll out 400,000 tons per year. Hyundai Heavy Industries will use the facility for repair or additional finished touches of nearly completed vessels. The decision to close Dock 5 comes after plans of the shipbuilder to restructure its business reducing the workforce by 6,000 in 2017 and closing major facilities coping with decreasing number of new orders and crisis in the sector.
Hyundai Heavy Industries closed Dock 4 in June 2016 and also announced closure of its affiliate Gunsan Dockyard in May 2017. Moreover, the offshore dock in Ulsan is expected to stop late this year. From total nine docks for commercial vessels in Ulsan shipyard about half will be emptied.
The lack of work across dock-affiliated factories is another problem that plagues the shipbuilder. Some panel assembly factories will be used for different purposes because there is no demand for panel supplies.
Hyundai Heavy Industries is the world’s largest shipbuilding company, headquartered in Ulsan, South Korea.