A dip in the global economy has forced STX Finland to move forward with the closure of its Rauma Shipyard, the company announced Monday.
In a statement, STX Finland announced that its Board has unanimously approved a restructuring of the company which will see current operations at the Rauma Shipyard ramped down and functions shifted to the Turku Shipyard.
“The decisions made now are based on a realistic estimate of the company’s current state and the market outlook. They will halt the company’s vicious circle of losses, now in its sixth year, and lay the foundation for a profitable business,” says Jari Anttila, EVP & Deputy CEO of STX Finland.
The restructuring will involve the entire company and its personnel in both Turku and Rauma. As a result, the Turku and Rauma Shipyards will be reducing their workforce by about 700 person-years by the end of June 2014. STX Finland says it is pursuing negotiations with personnel on how the restructuring is to be implemented, what its impact will be on the various personnel groups and what the timetable will be. In addition, the company will be offering concrete support and employment measures for employees who would be laid off as a result of the restructuring; these measures will be planned in cooperation with the employment authorities.
STX Finland has been actively seeking solutions for saving the Finnish shipyard industry. In recent years, the company has been struggling with low profitability and a lack of orders.