Daewoo Shipbuilding plans to shed Welliv food business

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Daewoo Shipbuilding plans to shed Welliv food business

Debt-ridden shipbuilder Daewoo Shipbuilding & Marine Engineering said it is selling its meal caterer Welliv on Thursday as part of its attempt to make the company leaner.

Full shares of Welliv will be sold to a private-equity investment firm for roughly 65 billion won ($58 million), the shipbuilder said in a statement. Welliv has offered catering services as well as security and support programs to foreign ship-owners.

The shipbuilder’s subsidiary is profitable. Last year, its revenue was 191 billion won and operating profit was 5.9 billion won.

Also, its Seoul headquarters will be reduced to cut costs. Among 17 floors above ground and five floors underground, the shipbuilder will use only 10 floors. The move is expected to save Daewoo 9 billion won.

By Kim Jee-hee
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