Hyundai Heavy to Shut Down Rig Construction Yard
As the prices for oil have dropped, so have the orders for offshore drilling rigs. In response to this decrease in demand, Hyundai Heavy Industries has been forced to temporarily shut down its rig construction yard in Onsan, South Korea.
The company is one of the world’s largest builders of offshore drilling rigs, and their rigs are used prominently in oil and gas operations around the globe. With a drop in oil prices, there has been a lack in demand for oil field equipment. Oil field companies continue to slash their capital investments while they wait for prices to jump back up.
March Will Bring a Major Shutdown
According to reports, the yard is scheduled to shut down in March. Hyundai Heavy Industries plans to keep the rig construction yard closed down until they get new orders. Despite the serious hits that some of these major shipyard companies—including Hyundai, Samsung, and Daewoo—have endured due to dropping oil prices, news reports indicate that they are still planning to pay bonuses to workers.
The shipyards are aiming to boost employee morale during this frustrating time, according to a South Korean news agency. The agency reported that the companies are set to pay bonuses to the workers that would be equivalent to their basic monthly pay in celebration of the Lunar New Year, which falls on February 8. While it is still not clear how the drop in oil prices will further impact the offshore industry, it is important for workers to ensure they are treated fairly during this time. Thankfully, it appears that Hyundai Heavy Industries and others are striving to do exactly that.