Samsung Group has announced that it is to merge its ship-building and engineering units. The South Korean business has been undergoing a restructuring programme in recent months as it prepares itself for a change of leadership; the chairman, Lee Kun-hee, has been in hospital since suffering a severe heart attack in May.

The latest bout of restructuring will see the engineering unit merge with Samsung Heavy Industries (SHI) in a bid to “enhance their offshore business”, according to a company spokesman.

While primarily a ship-building company, SHI also makes bridge structures, constructs plants and operates wind-power facilities. Samsung Engineering’s business portfolio ranges from refineries and power systems to industrial facilities and ‘clean fuel’ plants. The proposed merger will take effect in December.

Chung Sun-seop, who runs a Web site that analyses South Korea’s major business groups, said: “The group has to simplify its sprawling business structure through consolidation and spin-offs, so that management of its units can be split among Mr Lee’s children in the long term. We expect such group-wide restructuring to be completed by the first half of next year.”

Samsung recently merged the electronics materials unit of Cheil Industries with Samsung SDI, while Samsung General Chemicals acquired Samsung Petrochemical.