Lindø adjusts its workforce to new business model

Lindø, 15 June 2009

In connection with Odense Steel Shipyard's ongoing adjustment to a smaller yard it is being considered downsizing the number of white-collar employees by 175.

Following the new business model of Odense Steel Shipyard comprising an industrial division and a shipyard division, the shipyard division is in future targeted at building a smaller number of specialised vessels. The new organisation of the shipyard division suits the future needs and it has a lesser demand for employees and the shipyard is therefore considering the dismissal of 175 employees, primarily within engineering and technical trades as well as supervisory functions.

The dismissals will take place in accordance with current rules and agreements and the shipyard will do whatever is possible to assist the dismissed staff in finding new employment.

Finn Buus Nielsen, Odense Steel Shipyard's Managing Director, says: "We have not obtained new orders for ships since the first quarter of 2008, and during the financial crisis the prospect of forthcoming orders is poor. The customers of the shipyard are also working in a particularly difficult market where charters are difficult to find, and we have therefore had to agree that three Ro-Ro ships for Pacific Basin will be delivered later than originally agreed."

The shipyard's order book today consists of six bulk carriers, seven Ro-Ro ships and three frigates, equal to a need for approx. 2000 blue-collar employees up to March 2010. From then and over the summer 2010, the need falls to approx. 500 blue-collar employees for the production of the rest of the ships on order up to the end of 2011.

"There is a different, positive outlook for the other part of the business model which rents out facilities to other industries. We have already entered into an agreement for a minimum of 25 years with Fredericia Shipyard, and there continues to be great interest from other businesses. This gives us reason to believe that agreements can be made with growth industries who have considerable needs for employees", concludes Finn Buus Nielsen.

Odense Steel Shipyard Group