DSME to receive USD3.7 billion bailout - IHS Jane's 360
DSME (aka Daewoo shipyards) has been in a tight financial corner for a while, and seems to have come to a deal with its main creditors.Note that DSME is almost a third owned by a state owned bank - the chance of the Korean gov't letting them fail is exceedingly low.
Daewoo, along with Hyundai Heavy Industries. has been shortlisted by NZ for the Endeavour replacement project (and is also battling Navantia for the RAN tanker contract). Hopefully they will be willing to cut margins to the bone in order to get an order on the books from a secure customer.
Hyundai's own finances are also pretty stretched, so they won't be willing to lose the work without a fight.
As far as I can make out (caution - not my area of expertise) both shipyards expanded capacity prior to the Global Financial Crisis, and were badly caught out when their customers started backing out of orders. They promptly switched resources into the booming offshore oil and gas industry, only to have that hit by the oil price drop. Meanwhile, cheaper Chinese yards are taking their low-end business, just like the Koreans did to the Japanes yards a couple of decades ago.