Damen Shiprepair & Conversion (DSC) has reported that market expectations for the short and medium term “are not positive” for the ship repair sector amid news that it would have to cut employee numbers.
Staff at Damen Shiprepair Rotterdam (DSR), Damen Shiprepair Van Brink (DSVB) and Damen Shiprepair Vlissingen (DSVl) are now facing reorganisation after being informed that their numbers will be reduced by approximately 150.
DSC has stated that was forced to review its situation and take these measures “due to continued adverse market conditions” after a decline in ship repair projects.
Damen Shipyards Group, which the has been active for over 40 years, added that large-scale market fluctuations are common but there is no recovery in sight for commodity prices and especially oil and gas.
It added: “Unfortunately, one of the consequences of this, is downsizing the number of permanent staff in all layers of the organisation, as well as reducing facility costs.”
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DSC will now focus its strategy on diversification as well as developing new product and market combinations. However, the oil and gas market has decreased in such a way that has left DSC unable to fill the void with other activities.
It will also expand and further diversify its product range, “where it will continue to offer solutions matching the changing requirements of customers and markets”.
All employees at the three locations, as well as the workers’ council and trade unions, have been informed about the intention to reorganise and DSC aims to complete the reorganisation before summer 2017.
DSC concluded with a promise to continue offering all customers “the high levels of service and quality they are used to receiving at DSC yards” and said that the measures will reinforce, and where possible extend its position within the worldwide ship repair market.
DSC recently announced its transition to new ISO certifications as part of an ongoing initiative to standardise operating procedures across the group.