August 30, 2001
Ssangyong tipped to acquire Daedong
Though some reports have indicated Daewoo as the likely purchaser of Korea's bankrupt Daedong Shipbuilding Co, engine builder STX, formerly known as Ssangyong Heavy Industries may well be the eventual buyer.
Reportedly, the Seoul District Court has decided to negotiate with STX. Daedong has been under court receivership since 1997.
According to Korean reports, STX will now conduct due diligence on Daedong, before starting takeover talks.
Daewoo Shipbuilding & Marine Engineering Co, Hanjin Heavy Industries and INP Heavy Industries had all expressed their interest in Daedong.
Daedong went bankrupt following a $230 million investment in new facilities in 1994. Major creditors, which include the Korean Development Bank, are said to hoping to get $100 million for the yard.The sale is being managed by KMPG.
Daedong booked orders worth about $256 million last year
The yard has a single 320 m long x 74 m wide building dock served by two 300 ton gantry cranes. The dry dock allows simultaneous construction of two panamax beam vessels in parallel and a further two by semi-tandem method at the same time, enabling an annual newbuilding production of up to 16 vessels, totaling 600,000 gt..