STX to restructure Finnish operations

According to STX, the anticipated volume of future demand is not enough for it to sustain two shipyards in Finland. The company has announced that current operations at the Rauma shipyard will be “ramped down” and Rauma’s work shifted to the Turku yard. Because Turku is able to build all types of vessels, STX does not believe that this move will limit its offering or reduce the volume of its operations.

“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,” said Jari Anttila, EVP & deputy CEO of STX Finland.

The plans are for both Turku and Rauma shipyards to reduce their workforce by about 700 person-years by the end of June 2014. STX Finland is in negotiations about how the implementation and timing of the job losses. The company says it will offer “concrete support and employment measures for employees who would be laid off as a result of the restructuring”, 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 Mr Anttila.