Heerema Fabrication Group (HFG) is planning to divest a part of its activities dedicated to the design and fabrication of steel constructions for the offshore market following a strategic review.
HFG intends to dispose of activities at the yard in Zwijndrecht, The Netherlands, and Hartlepool, United Kingdom, as well as close its head office in The Netherlands, which is expected to bring to a loss of 60 jobs at the headquarters.
The Dutch company has signed a letter of intent to sell its activities in Zwijndrecht with the Italian engineering and construction company Rosetti Marino S.p.A. and believes the transfer will not affect the workforce at the yard.
In the coming period, HFG plans to seek a buyer for the Hartlepool yard activities.
The activities at the yard in Vlissingen, The Netherlands, and Opole, Poland, will continue working and being focused on the construction of jacket foundations for the offshore industry.
“We are very much aware that the intended plans will have a deep impact on our staff at the head office in Zwijndrecht,” said HFG’s CEO Koos-Jan van Brouwershaven. “We will be providing every support we can offer in this very difficult period.”
HFG said it has been struggling for some time with insufficient project volume and marginal profitability, while the risks associated with building topsides are high and clients are not prepared to pay for it.
This planned divestment comes after a restructuring in November 2016 that took place against the background of the decreased oil price, the consequent lack of investment in the oil and gas industry and unfavorable contractual conditions in the wind energy market. It was based on the expectation that the market would improve from 2019 onwards.
“With the ongoing difficult market conditions there is not enough perspective for HFG to continue its activities with the current structure and head office organization,” Van Brouwershaven concluded.