STX Finland, the troubled shipbuilder in the STX Europe group in Oslo that again is part of the ailing STX Offshore & Shipbuilding group in South Korea, will close its Rauma shipyard, the company said in a statement.
The decision will result in a reduction of 700 jobs at the company, which after this move will only have one yard, in Turku some 60 miles south of Rauma.
“As part of the STX Finland restructuring, current operations at the Rauma Shipyard will be ramped down and functions shifted to the Turku Shipyard. The 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,” STX Finland said.
The Rauma shipyard has built several large cruise ferries in recent years and it has also constructed expedition type cruise liners.
“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,” Jari Anttila, EVP & Deputy CEO of STX Finland, said in the statement.
“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,” STX Finland said
