Heerema Marine Contractors (HMC) has informed that it will cease its offshore pipe lay activities with immediate effect, leading to dismissal of 350 employees.
The decision, a part of the strategic transition of the company, follows from a review and commercial evaluation in early 2018 of HMC’s current position in the highly competitive pipe lay market which continues to suffer from significant overcapacity.
The company said that “regrettably around 350 permanent jobs in Heerema Marine Contractors will be phased out with compulsory redundancies unfortunately being unavoidable.”
This represents a further realignment of the company, first set in motion with the restructuring in the last quarter of 2017, related to the unfavourable market conditions and low investments in the oil and gas industry.
Following the termination of the pipe lay activities Heerema Marine Contractors will be focusing entirely on its core business of heavy lift, decommissioning and renewables.
Heerema Marine Contractors’ intended future set up will be structured around the business areas of transport and installation of offshore structures, decommissioning of platforms and the execution of projects in the renewables sector. The company will convert its deep water construction vessel Aegir to a fast sailing heavy lift vessel.
During the transition period Pieter Heerema, HMC chairman, will take up the additional de facto role of chief executive of Heerema Marine Contractors prior to the appointment of a permanent CEO.
Pieter Heerema said: “Dictated by the difficult market conditions we have to change into a different kind of organization. I deeply regret the consequent loss of trusted and professional colleagues who have helped building our strong reputation in the offshore (pipe lay) market. At the same time we have to continue our process of transforming into a marine contractor which is leaner, more efficient and capable of benefiting from the opportunities the offshore market still represents.”