STX Finland Re-structuring: Hundreds to Lose Jobs

As part of the restructuring of STX Finland, current operations at the Rauma Shipyard will be ramped down and functions shifted to the Turku Shipyard.

Like other European shipyards, the Finnish shipbuilding industry is suffering the effects of the recession in the global economy; an increase in surplus capacity and the financial crisis have all led to a cut in orders and stiffened competition. Consequently STX Finland say they have been been activelly seeking solutions in order to save the Finnish shipyard industry.

As part of the restructuring of STX Finland, current operations at the Rauma Shipyard will be ramped down and functions shifted to the Turku Shipyard. The volume of anticipated future work is not enough to sustain two shipyards at STX Finland. The Turku Shipyard is able to build all types of vessels. and the restructuring plan will not limit the company's offering or reduce for 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, "says Jari Anttila, EVP and Deputy CEO of STX Finland.

The restructuring, explain STX, 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 work force 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 time table will be.