Troubled Offshore Equipment Maker Sends Staff on Compulsory Leave

(Beijing) – A state-owned manufacturer of deep-water drilling equipment has told a group of workers to take mandatory leave to slash costs as orders dry up, an internal document viewed by Caixin showed.

An employee of Yantai CIMC Raffles Offshore Ltd., a subsidiary of the state-backed China International Marine Containers Group Co. Ltd. (CIMC), confirmed that starting on June 1, workers who have been idling at the company's three manufacturing yards will be sent on mandatory leave until the company secures new orders. They will be entitled to 70 percent of the local minimum wage while on vacation, the document showed.