Compania Sud Americana de Vapores (CSAV), Latin America's largest shipping line, will lay off 700 staff around the globe as the company restructures.
Chile's CSAV, whose profit has suffered due to hefty ship and container leasing fees, falling transport prices and rising international oil prices, posted a first half loss of US$527.1 million, reported Dow Jones Newswires.
"The shipping industry faces a complex international scenario, as well as an adverse economic scenario in the short term. Faced with this situation, Vapores is implementing a deep restructuring plan," the company said in a statement.
As part of its wider restructuring plans, shareholders of CSAV have approved a $1.2 billion capital increase. The line had already raised $500 million through a capital increase earlier this year.
CSAV is controlled by the local Luksic family, through their Quinenco holding company, and the local Claro family, through Maritima de Inversiones holding company.
The Luksic family, reportedly Chile's richest, purchased its stake in CSAV earlier this year and brought its business-savvy managerial style to the company. They also control London-listed mining company Antofagasta, brewer Compania Cervecerias Unidas and the country's second-largest bank, Banco de Chile, among other assets.
Chile's CSAV, whose profit has suffered due to hefty ship and container leasing fees, falling transport prices and rising international oil prices, posted a first half loss of US$527.1 million, reported Dow Jones Newswires.
"The shipping industry faces a complex international scenario, as well as an adverse economic scenario in the short term. Faced with this situation, Vapores is implementing a deep restructuring plan," the company said in a statement.
As part of its wider restructuring plans, shareholders of CSAV have approved a $1.2 billion capital increase. The line had already raised $500 million through a capital increase earlier this year.
CSAV is controlled by the local Luksic family, through their Quinenco holding company, and the local Claro family, through Maritima de Inversiones holding company.
The Luksic family, reportedly Chile's richest, purchased its stake in CSAV earlier this year and brought its business-savvy managerial style to the company. They also control London-listed mining company Antofagasta, brewer Compania Cervecerias Unidas and the country's second-largest bank, Banco de Chile, among other assets.