OSM to control ship management functions of Neste Shipping

23 February 2014 (Last Updated February 23rd, 2014 18:30)

Neste Oil will transfer its subsidiary Neste Shipping's ship management functions to Norwegian ship management services provider OSM, as part of the company's plans to exit the shipping business and develop its core business of cleaner traffic solutions.

Neste Oil

Neste Oil will transfer its subsidiary Neste Shipping’s ship management functions to Norwegian ship management services provider OSM, as part of the company’s plans to exit the shipping business and develop its core business of cleaner traffic solutions.

An agreement to this effect was signed by Neste Oil and OSM on 20 February 2014.

In Finland, OSM will establish a subsidiary to oversee the crew and maintenance of vessels previously under the management of Neste Shipping that continue to be used by Neste Oil.

During October and November 2013, statutory employer-employee negotiations were held as part of the outsourcing plan of the company’s ship management functions.

Neste Shipping’s shore and seagoing personnel will be moved to OSM’s new Finnish arm in spring this year.

Under its ship management functions, Neste’s shipping unit has around 300 employees at sea and 17 on shore; its chartering functions will be retained and integrated to the Neste Oil organisation.

Neste Shipping managing director Arvo Ruotsalainen said: "OSM’s good reputation and safety record, and capabilities in terms of developing ship management functions and leveraging the specialist expertise of our personnel, all contributed to our choice."

"We also believe that OSM will be able to offer our fleet personnel a wider range of opportunities than Neste Shipping would have been able to, as a much smaller company in the ship management field."

In addition, Neste Oil plans to offload its key vessels to companies jointly owned by Finland’s National Emergency Supply Agency and the Ilmarinen Mutual Pension Insurance company, from which it will charter them back on long-term agreements.

An asset management firm will be established to handle the vessel assets.


Image: The move is part of Neste Oil’s plan to exit the shipping business. Photo: courtesy of Neste Oil.