Reports of 8,000 layoffs hit Rongsheng
By Richard Fu |
July 5, 2013, Friday
|
Print Edition
Print Edition
CHINA Rongsheng Heavy Industries Group Holdings Ltd halted share trading yesterday after media reports said China's largest private shipbuilder had laid off 8,000 workers amid a downturn in the industry.
The Wall Street Journal said these workers represented about 40 percent of Rongsheng's workforce, citing Lei Dong, secretary to the president. Rongsheng declined comment yesterday after suspending share trading pending clarification of the news.
Rongsheng shares tumbled 10 percent in Hong Kong on Wednesday after it said had faced protests from workers about layoffs and unpaid wages earlier this week at its yard in Jiangsu Province. Chinese media have reported the protests.
In a Tuesday statement, Rongsheng said, without giving a number, the job cuts are a result of ongoing restructuring geared to making more specialized vessels to serve the offshore energy industry under a strategy to focus on new markets in response to a slump in the shipbuilding industry.
It set up an offshore marine equipment unit in Singapore last year.
"We expect a continuing deterioration in the balance sheet given weak demand growth for bulk vessels," Barclays said.
The Wall Street Journal said these workers represented about 40 percent of Rongsheng's workforce, citing Lei Dong, secretary to the president. Rongsheng declined comment yesterday after suspending share trading pending clarification of the news.
Rongsheng shares tumbled 10 percent in Hong Kong on Wednesday after it said had faced protests from workers about layoffs and unpaid wages earlier this week at its yard in Jiangsu Province. Chinese media have reported the protests.
In a Tuesday statement, Rongsheng said, without giving a number, the job cuts are a result of ongoing restructuring geared to making more specialized vessels to serve the offshore energy industry under a strategy to focus on new markets in response to a slump in the shipbuilding industry.
It set up an offshore marine equipment unit in Singapore last year.
"We expect a continuing deterioration in the balance sheet given weak demand growth for bulk vessels," Barclays said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
