Hyundai Mipo shuts down dock, other shipyards in voluntary leave

Hyundai MipoFollowing suit of its bigger shipyard Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. decided to shut down a dock in Ulsan base for three months due to shortage of work.

According to a company official on Wednesday, Hyundai Mipo Dockyard will power down the fourth dock for three months until December. The fourth dock, the smallest among the four yards with a capacity to build 350,000-ton ships, has remained idle since the last vessel was shipped off on Aug. 17.

The dock will stay open for finishing touches on ships on waters, said the company. It will renew full-fledged operation in December to make a roll-on/roll-off ship designed to carry wheeled cargoes and tracked vehicles.

Its parent builder Hyundai Heavy Industries also endeavored to save costs by shutting down docks in turns amid dwindling backlog. The Gunsan dock was closed down from July and one in Ulsan from March. The fourth dock in Ulsan was also powered off in June last year.

Another affiliate Hyundai Samho Heavy Industries Co. has sent employees to take turns in taking unpaid leave from October last year. Hyundai Mipo is in discussion with the union on simliar action on the redundant workforce.

Despite recovery in global demand, shipbuilders that have suffered from a market slump for several years are in a similar dilemma to save costs and weather the tough times.

STX Offshore & Shipbuilding Co. and Daewoo Shipbuilding & Marine Engineering Co. have been asking employees to take leave since late last year. Samsung Heavy Industries Co. also made similar pleads to the union.

The Original Posted By Kim Jung-hwan/Maeil Business