SHI mulls more job cuts if it misses targets

Samsung Heavy Industries (SHI) is considering more job cuts if annual order targets are not met.

Chief executive Park Dae-young said the shipyard could win orders worth $5.3bn, but if not, additional layoffs would be an option to keep SHI afloat.

The company does not plan to reduce its target figure as it won two contracts in the last three weeks.

SHI will build two firm LNG carriers for GasLog and four tankers for Norway’s Viken Shipping.

The two deals are estimated to be worth more than $500m.

SHI also expects to sign an important order with Italy’s Eni for a floating liquefied natural gas (FLNG) unit.

Around 40% of SHI’s 14,000 workers are expected to be axed under the company’s self-help scheme.

But Park dismissed speculation that SHI would merge with Samsung Engineering, Yonhap reported.

Korean analysts projected yesterday that cost-cutting efforts from South Korean shipbuilders could help them improve their financial results in the near future.