Hyundai Heavy Industries Co., a major shipyard in South Korea, has submitted a self-rescue plan to its creditors, which includes the reduction of more jobs and sales of assets, in order to tide over the deepening industrywide slump, industry sources said Thursday.

According to the sources, Hyundai Heavy handed over the plan to the creditors, led by KEB-Hana Bank, earlier in the day.

Local shipyards, including Daewoo Shipbuilding & Marine Engineering Co., have been pressed by their creditors and the government to cut costs and shore up their worsening financial status, as they are struggling with mounting losses amid falling new orders.

Hyundai Heavy said earlier it plans to let 3,000 workers go, some 10 percent of its total workforce, and sell noncore assets, such as buildings and property.

Last month, the shipbuilder reduced the number of its executives by 25 percent and cut their wages.


Its local rivals, including Samsung Heavy Industries Co., are also working to map out a set of schemes to cut costs.

In 2015, local shipbuilders faced one of their most turbulent years. The top three shipbuilders racked up a combined net loss of 7.7 trillion won and failed to clinch significant new orders.

Meanwhile, Hyundai Mipo Dockyard Co., Hyundai Heavy‘s smaller affiliate, has won deals to build two petrochemicals carriers. The value of the deals was not revealed, but industry sources estimated it at up to $50 million. (Yonhap)