Heerema Fabrication Group Sells UK and Netherlands Yards

Laxman Pai
Thursday, November 22, 2018

Dutch offshore construction and engineering company Heerema Fabrication Group (HFG) intends to divest a significant part of its activities in the field of design and fabrication of complex steel constructions for the offshore market.

HFG has been struggling for some time with insufficient project volume and marginal profitability. In addition, the risks associated with building topsides are high and clients are not prepared to pay for this risk.

As a result of the divestment HFG intends to dispose of its activities at the locations in Zwijndrecht (The Netherlands) and Hartlepool (United Kingdom). The intended restructuring will see the closure of HFG’s head office in The Netherlands. It is anticipated that 60 jobs at the company’s headquarters will be phased out.

HFG has signed a letter of intent aiming to sell its activities at the yard in Zwijndrecht with the Italian engineering and construction company Rosetti Marino S.p.A.. It is expected that the transfer of activities will not affect the workforce at the Zwijndrecht yard. In the coming period HFG also intends to seek a buyer for its activities at the yard in Hartlepool. The activities at the HFG yard in Vlissingen (The Netherlands) and Opole (Poland) will continue as they are.

The management of HFG meanwhile has informed staff at all locations about the intended plans and has requested advice from the works council of HFG Netherlands. HFG is committed to support staff who are being made redundant as a result of the divestment. “We are very much aware that the intended plans will have a deep impact on our staff at the head office in Zwijndrecht”, says HFG’s CEO Koos-Jan van Brouwershaven. “We will be providing every support we can offer in this very difficult period.”

The current intended divestment follows a restructuring of HFG 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 unfavourable contractual conditions in the wind energy market. The restructuring was based on the expectation that the market would improve from 2019 onwards. Van Brouwershaven is disappointed that the reorganization did not bring HFG the results it needed. “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.”

The HFG yard in Vlissingen, supported by the yard in Poland, will remain focused on the construction of jackets for the offshore industry and at the same time will continue to act as shore base for its sister company HMC.

Categories: Offshore Marine Equipment Offshore Energy Construction and Design Activity Fabrication

Related Stories

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

Shell Hires Noble’s Drillship for Work in Southeast Asia

Marine Masters Secures Wellhead Platforms Installation Job Off India

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

SLB Names Raman CSO, CMO

Eco Wave Finds Partner for Wave Energy Project in India

Japan's Mitsui Eyes Alaska LNG Project

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com