Samsung Heavy Industries: Suddenly Closes Shipyard in China: Dismisses All Employees
Samsung Heavy Industries:
A Korean-owned shipyard in Ningbo, Zhejiang, China, has announced a sudden closure.
It invites “protests by thousands of employees seeking compensation, etc.”
Samsung Heavy Industries Shipyard Closure:
On September 13, all employees were unilaterally notified of the dismissal.
According to the company’s plans, the shipyard will be closed by the end of 2021 to put an end to production in Ningbo.
Ningbo Business Model:
At the Ningbo shipyard, only hull blocks were manufactured.
Import all raw materials from South Korea
Assembled into a hull block in Ningbo,
Re-export to South Korea.
The hull was completed at the shipyard of the Korean headquarters.
He said that this business model was the cause of the withdrawal.
Korean Government Protection Policy:
The Korean government wants to protect its technology
Liquefied gas carrier with high added value,
Not allowed to be manufactured in China.
For this reason,
What can be manufactured in Ningbo, China, has low added value and poor profit margin.
It was inevitable that the Ningbo Shipyard would be closed only with conventional vessels.
China Biz & Tech | Toyo Keizai Online