Norway’s New Havyard Ship Technology to restructure operations

New Havyard Ship Technology has announced its plan to reorganise its operations into a repair and service yard and reduce the number of staff due to challenging market conditions.

Havyard Group CEO Gunnar Larsen said that the market for newbuilds and the possibilities of securing funding for building projects will be challenging in the time ahead while, on the other hand, the service market is healthy and profitable.

Larsen added: “New Havyard Ship Technology must, therefore, restructure its operations to repairs, service, and maintenance. The yard’s facilities, expertise, and location mean that we are in a good position to be a reliable provider to customers in this market as well.”

The employees were informed of the changes at the yard in Leirvik.

He added that the strategy of becoming a service and repair yard ‘is absolutely necessary to keep as many jobs as possible’.

According to the CEO, the Norwegian yard industry is facing challenges and requires greater measures to facilitate shipbuilding.

As the yard will be converted into a repair, maintenance, and modification yard, the count of employees will be reduced by approximately 100. It will take place in 2021.

Currently, New Havyard Ship Technology has six newbuilds scheduled for completion during this year and in 2021.

The downsizing of the staff will occur in correlation with the completion of the newbuilds and the shift in activities at the yard as it receives new service assignments.

New Havyard Ship Technology general manager Erlend Hatleberg said: “We will deliver excellent newbuilds in the same way as always.”

The company said that it has not completely ruled out newbuild activities.

Hatleberg added: “We have newbuild expertise and experience of upscaling and downscaling the yard in line with demand. Therefore, newbuilds may be an option in future, but for now, we will primarily concentrate on adding a new string to our bow: repairs, maintenance, and modification.”