Stolt-Nielsen Announce Cost Reduction Program

Friday, January 18, 2002
Stolt-Nielsen Transportation Group Ltd. (SNTG), a wholly owned subsidiary of Stolt-Nielsen S.A. announced a cost reduction program for its business operations which will include the reduction of 10 percent of its approximately 900 office-based staff. SNTG estimates that the restructuring will enable annual cost savings of approximately $10 million by 2003 by consolidating operations in key regional centers eliminating some unnecessary management levels. The program will result in a one-time charge of approximately $10 million in 2002.

Reginald J.R. Lee, Chief Executive Officer of SNTG, said, "The consolidation of our customer base in the chemical industry and the resulting needs for improved and more-cost-effective services has required new strategic initiatives to improve our returns, which despite recent improvement, have been less than satisfactory in recent years. In early 2001, SNTG embarked upon a major strategic initiative to improve the utilization of our assets, divest non-core assets, and reduce our cost base. We have previously announced several aspects of this initiative including combined service agreements with other parcel tanker operators to reduce operating costs and improve utilization; the sale of non-strategic terminals in Perth Amboy and Chicago; and the construction of a new storage terminal in Braithwaite, LA and expansion of terminals in other key ports to increase the synergy between our ships and storage terminals. We are confident that these steps will enable us to better provide cost-effective services to our customers, maintain our leadership position in the industry, and improve shareholder returns."

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

NATO Unconcerned by Russian Warships in English Channel

A squadron of Russian warships entered the English Channel on Friday but a NATO official dismissed a Russian media report that they were there to conduct military exercises.

Japan Military Wants China "Crisis Management" Pact

Japan's highest-ranking military officer on Friday urged an early start to a "crisis management" mechanism with China amid conflicting claims to a group of tiny East China Sea islands.

NAVCENT Commander Recognizes Journey of Hope Sailors

Commander, U.S. Naval Forces Central Command, U.S. 5th Fleet, Combined Maritime Forces, Vice Adm. John. W. Miller, recognized the accomplishments of three special-needs sailors from the Kuwaiti ship,

Finance

Asia VLCC Rates Could Could Climb Even More

Owners see rates climb by nearly $22,000 per day; Rates could peak as more tonnage comes free. Rates for very large crude carriers (VLCCs) on key Asian routes

New Players in Singapore Markets in OW's Absence

The downfall of a leading marine fuel supplier that prompted sellers to tighten credit terms in Singapore is skewing the post-OW Bunker jostle for market share

Asian Airlines Pause Before Hedging on Fuel

Oil fell to four-year low of $72 on Thursday; Airlines hope the price will slip below $70 a barrel. Airlines in Asia-Pacific are holding off from hedging their

 
 
Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1611 sec (6 req/sec)