A.P. Moller - Maersk Group is to discontinue building ships at Denmark's Odense Steel Shipyard (Lindø).
A.P. Moller - Maersk Group is to discontinue building ships at Denmark's Odense Steel Shipyard (Lindø). Despite huge effort to improve the yard's competitiveness with investments in new technology and streamlining of production, the shipyard has run up very considerable annual deficits. It must now, says Maersk, "realize that it is impossible to attract orders which are commercially sound."
The yard has frequently been toured by American politicians and officials and has often been held out before U.S. shipbuilders as an example of efficient shipbuilding practice.
Be that as it may, the Board of the yard has decided to discontinue shipbuilding activities, when the contracted orders have been fulfilled. The present workforce will be continuously downsized to accommodate production. The contracted orders (five bulk carriers, seven Ro-Ro ships and three frigates) extend to August 2010, November 2011, and February 2012, respectively. The first redundancies of approx. 175 employees are expected to take place from the end of August this year.
Lars-Erik Brenøe, Chairman of the Lindø Board, says: "We will continue the process of attracting clients to the business unit, LindøIndustrial Services, and in that connection we strive to ensure a considerable number of jobs. We will in the time to come work closely with all relevant parties to provide the best possible assistance to the employees who will be leaving Lindø during the next few years."
Maersk is looking to sell off some Lindø Industrial Services activities as independent businesses. Lindø Industrial Services' business areas comprise operation of mooring space and cranes, including the gantry crane, steel storage and handling, internal transport of heavy equipment, production of pipes and steel components as well as letting of ocean-going transport barges.
With the discontinuation of the shipbuilding activities at Lindø, Maersk no longer needs to own Lithuanian shipyard, Baltija Shipyard and it is up for sale as is Lithuanian design and engineering company UAB Baltic Engineering Center.