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Sungdong Shipbuilding begins unpaid leave for 1,500 workers till Aug.

Sungdong Shipbuilding

 Sungdong Shipbuilding & Marine Engineering Co. said Friday hundreds of workers have taken unpaid leave as part of the company’s efforts to muddle through falling orders in the struggling shipbuilding industry.

About 320 workers of the world’s biggest shipyard of midsized ships based in Tongyoung, South Gyeongsang Province, began the one-month unpaid vacation Thursday, a company spokesman said, adding about 1,500 employees will take turns for one-month unpaid leave until August.

The company has yet to decide whether to extend the unpaid vacation beyond August.

Those on unpaid leave are eligible for a certain amount of government subsidies.

Sungdong Shipbuilding has received 1.9 trillion won in financial aid from its creditors since 2010.

It is the second time in just two months that hundreds of employees of the country’s major shipbuilder began taking unpaid leave.

About 200 workers of Daewoo Shipbuilding & Marine Engineering Co. (DSME) went on a monthlong unpaid leave in January, followed by as many employees doing the same the following month.

DSME said 4,700 employees with desk jobs will take turns on unpaid leave starting in January.

DSME is the first among the nation’s top three shipyards to actually make office workers take unpaid leave, though two others — Hyundai Heavy Industries and Samsung Heavy Industries Co. — have included no-pay leave in their self-rescue programs.

Sungdong Shipbuilding

Daewoo said Thursday it has clinched a 414 billion-won (US$363 million) deal to build two liquefied natural gas (LNG) carriers for delivery to an unidentified customer by August 2019.

The shipbuilding deal is Daewoo Shipbuilding’s first contract of the year, which will help the shipyard repay part of the 440 billion won in debt due in April. Daewoo Shipbuilding also has 300 billion won of debt due in July and 200 billion won in November.

Sungdong Shipbuilding

A file photo of Sungdong Shipbuilding & Marine Engineering Co.’s shipyard in Tongyoung, South Gyeongsang Province.


The Original Posted by hdh@yna.co.kr/Yonhap News

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