Damen Shiprepair & Conversion (DSC) has announced a reorganisation at three Dutch yards within its group that will result in 150 layoffs.
The layoffs will impact staff of Damen Shiprepair Rotterdam (DSR), Damen Shiprepair Van Brink (DSVB) and Damen Shiprepair Vlissingen (DSVl). DSC has cited continued adverse market conditions for the reduction in staff.
DSC, with 16 repair and conversion yards across the world, is part of Netherlands-based Damen Shipyards Group, which has a total of 32 shipbuilding and repair yards and employs 9,000 people.
“Large-scale market fluctuations are common for the ship repair sector – within which the Damen Shipyards Group has been active for over 40 years. The strategy of DSC focusses on diversification as well as developing new product/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,” Damen said in a press release announcing the layoffs.
Making matters worse, market expectations for the short and medium term are not positive.
“There is no recovery in sight for commodity prices in general and oil and gas prices in particular and the resulting reduction in ship repair projects forces DSC to review its situation. 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,” the press release said.
Going forward, DSC says its strategy will focused on expansion and further diversification of its product range. All employees at the three locations, as well as the workers’ council and trade unions, have been informed about the intention to reorganize.
DSC intends to complete the reorganization before summer 2017.
“DSC will continue to offer all customers the high levels of service and quality they are used to receiving at DSC yards. DSC is convinced that, as a result of these measures, it will reinforce, and where possible even extend, its position within the worldwide ship repair market,” the company said.