STX Finland, the Finnish cruise ship and ferry builder in the STX Europe in Norway group that again is part of STX Offshore and Shipbuilding in South Korea, has confirmed thsat a total of 670 jobs would be lost at the company.

Of the total, 620 persons would be made redundant in Rauma, where the company will close down its shipyard that has mainly built ferries as it had announced earlier. A further 50 persons would lose their jobs in Turku, where the company retains a shipyard that currently has two cruise liners on order for TUI Cruises in Germany.

In addition, 80 persons at the Rauma yard would be offered jobs at Turku, some 60 miles south from the city where the shipyard will be closed down. The measures would be completed by the end of June next year.

Both shipyards have made losses and the reduction in personnel, which will number 1,655 after these cuts, is aimed to scale down the operations of STX Finland to match with expected demand.

STX Offshore & Shipbuilding is in itself facing financial difficulties and it has put its units in Europe up for sale. STX Europe recently sold its 50% stake in Aker Arctic, which has a shipyard in Helsinki that focuses on building tonnage for use in Arctic waters, to its Russian venture partner that already owned the other 50% of the shares in the company.

The South Korean group owns 100% of STX Finland and 64% of STX France through its STX Europe unit in Oslo.