STX Finland, which has seen a deterioration of its shipbuilding base for many years, today announced its latest plan to stem the flow of red ink: a phase out of the Rauma shipyard.
Senior management cited the continued bad global economy in the wake of the economic meltdown of 2008 as the primary source of trouble.
"The decisions made now are based on a realistic estimate of the company’s current state and the market outlook,” said Jari Anttila, EVP & Deputy CEO of STX Finland. “They will halt the company’s vicious circle of losses, now in its sixth year, and lay the foundation for a profitable business.”
According to the company, work will be shifted to its Turku Shipyard, as anticipated volume of future demand is not enough to sustain two shipyards at STX Finland. The Turku Shipyard is able to build all types of vessels. The restructuring will not limit the company’s offering or reduce the volume of its operations.
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 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. 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.
“We regret having to make such tough decisions that will hit the Rauma Shipyard especially hard. But the alternative would have been the shutting down of the Finnish shipyard industry and the ending of our 300-year heritage of shipbuilding. These decisions will enable a healthy and profitable shipyard industry to flourish in Finland,” said Anttila.
The board of STX Finland made the decision on the restructuring yesterday, Sunday September 15, 2013. The decision was unanimous and it has the support of the principal shareholder.