STX Finland to undergo total restructure

STX Finland is undergoing a total company restructure in the quest for profitability amid years of losses.

Citing "struggling with low profitability and a lack of orders," the company will vastly ramp down operations at the Rauma Shipyard with functions shifted to the Turku Shipyard, which "is able to build all types of vessels".

"The anticipated volume of future demand is not enough to sustain two shipyards at STX Finland," the company continued, "the restructuring will not limit the company's offering or reduce the volume of its operations."

Both the Turku and Rauma Shipyards will sustain heavy workforce losses, with the reduction of "700 person-years" of labour by the end of June 2014.

"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 Jari Anttila, EVP and deputy CEO of STX Finland.

Image Source: STX Shipyards