South Korean shipping firm Hyundai Heavy Industries (HHI) is to discontinue factory expansion work at its ship block manufacturing plant in the North Gyungsang Province of South Korea.

The company has been operating the factory since 2005 and signed the agreement with Pohang City for the plant’s expansion in April 2007, Asiasis reported.

Decline in the new-build market has led to the company’s decision, HHI said.