South Korea’s Hyundai Heavy Industries Co. said on Tuesday that it will merge shipbuilding and offshore & engineering divisions to streamline its mainstay business to survive coronavirus pandemic that has dampened global demand.
According to the world’s largest shipbuilder, it will merge its shipbuilding and offshore operations July 1. The company will also review organizational needs and effectiveness such as of engines and management support and streamline the organization by merging overlapping departments.
The reorganization will streamline the executive counts and business units by 20 percent and enhance organizational efficiency and competitiveness.
Hyundai Heavy Industries plans to apply intensive streamlining measures also at affiliated shipyards.
The move comes as the coronavirus pandemic has reduced the number of global orders amid slowdown in business activity in major countries.
Shares of its holding entity Korea Shipbuilding & Offshore Engineering fell 2.21 percent to 88,500 won.