A Producer of Crankshafts for Vessel Diesel Engines
Sunwoo CS, a shipbuilding component company recognized by the Korean government for its high export competitiveness, has recently filed an application for court receivership.
The company’s collapse illustrates the crisis that domestic shipbuilding parts makers are experiencing due to the steep drop in shipbuilding orders.
Sunwoo CS filed an application for rehabilitation with the Changwon District Court on March 30. At one time, it was recognized as a world-class producer of crankshafts for medium-sized vessel diesel engines, but it succumbed in the face of a prolonged slump. Sunwoo CS posted a deficit in 2018 and 2019, with net losses amounting to nearly 3 billion won for two years.
Founded in 2007, Sunwoo CS made its name as a cutting and processing company in the early 2010s. In particular, in 2012, the company was designated by the Korean government as a producer of world-class products. The world-class product program introduced by the Ministry of Trade, Industry and Energy in 2001 selected companies whose products can penetrate global markets. Eligible to the program are products that place fifth or higher in the world market share rankings and have a market share of 5 percent or more in an annual market of US$50 million or more.
The crankshaft produced by Sunwoo CS is a device for converting piston motions and is a key component for ships and generator engines. It weighs up to several tens of tons.
Industry analysts say that the collapse of Sunwoo CS suggests that small and medium-sized enterprises that have been recognized for their technological prowess can fall victim to the economic slump sparked off the spread of the COVID-19 virus.