Heerema Fabrication Group is preparing to lay off 450 workers in the UK, Netherlands and Poland because of poor market conditions including “unfavourable contractual conditions in the wind energy market”.
The Dutch company is carrying out a reorganisation to adapt to what it called “the strongly decreasing volume of work” with a focus on “increasing the efficiency and competitive power” of Heerema.
Cuts will take effect starting next year and run through 2018 following completion of existing commitments including substations at RWE’s 336MW Galloper and TenneT’s BorWin3 grid link.
It said: “Due to poor market conditions in the oil and gas industry, increasing competition, the combination of price pressure and unfavourable contractual conditions in the wind energy market, and the somber prospects for the near future, Heerema Fabrication Group has made the decision to implement a reorganization of the company.”
The company employs a total of 770 across the head office in Zwijndrecht in the Netherlands and its fabrication yards at Vlissignen, Opole and Hartlepool.
“The management has already informed the employees of the situation and requested advice from the works council,” said Heerema, which has entered into discussions with trade unions about a severance scheme.
“We fully realise just how devastating the planned reorganisation will be for many of our colleagues who have made such an important contribution to our company”, said Heerema chief executive Koos-Jan van Brouwershaven.
“We will do our utmost to support them throughout this difficult period. At the same time we are convinced that these steps are absolutely essential for the stability of Heerema and to guarantee its continuity,” he added.
Heerema will continue operations at a reduced scale at all of its facilities.
“The expectation is that, due to growing energy requirements in the long term, the number of projects in the market will increase again in the future. Until that time we will do everything in our power to maintain as much employment as possible”, says Koos-Jan van Brouwershaven.
Image: Heerema has been active in offshore wind markets including Germany (Heerema)
