Hyundai aborts expansion

Hyundai Heavy Industries has decided to discontinue the expansion work at its ship block manufacturing plant in Pohang city, North Gyungsang province, South Korea.

The world’s largest shipbuilder cited newbuilding market slump as the reason of the decision.

Hyundai has been operating the block factory in Pohang since 2005, and it signed an agreement with the city in April 2007 on expansion of the plant. Hyundai has already completed part of the expansion work and started building ship blocks but it decided to stop the rest of expansion project due to newbuilding market contraction.

The shipbuilder seems to have also cancelled the agreement with Pohang city and the expansion program appears aborted, not delayed. Hyundai had also postponed the construction of its new shipyard in Gunsan city, North Jeolla province by six months due to liquidity problem.