‘Hard but Essential’ STX Finland Restructuring Results in Layoffs

Like other European shipyards, the Finnish shipyard industry is suffering from the recession in the global economy. The increase in surplus capacity and the financial crisis have cut down on orders and stiffened competition.

STX Finland has been actively seeking solutions for saving the Finnish shipyard industry. In recent years, the company has been struggling with low profitability and a lack of orders. STX Finland is now launching a restructuring aimed at safeguarding the operating potential of the company and, by extension, the entire maritime industry thus ending the years of uncertainty. Solutions have been sought in collaboration with STX Finland personnel, funding providers and other partners.

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.

“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 & Deputy CEO of STX Finland.

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.

“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,” says Jari Anttila, EVP & Deputy CEO of STX Finland.

The board of STX Finland made the decision on the restructuring yesterday, Sunday September 15, 2013. The decision was unanimous and it has the support of the principal shareholder.

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Press Release, September 16, 2013