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

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

Impending Shortage of Jackups within Ageing Asia Pacific Fleet

Korea's Hanwha Raises Offer for Singapore's Dyna-Mac Takeover

Velesto Teams Up with SLB to Enhance Drilling Rig Capabilities

Santos Pens Mid-Term LNG Supply Deal

CNOOC Brings Online Another South China Sea Field

Valeura Produces First Oil from Nong Yao Extension Off Thailand

Borr Drilling Scoops $332M in Three Jack-Up Rig Contracts

ExxonMobil to Transfer Operations of Two Malaysian PSC Assets to Petronas

Current News

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Global Offshore Wind Stumbles to the End of '24

Seatrium Delivers Fifth Jack-Up to Borr Drilling

Malaysia's FPSO Firm Bumi Armada Eyes Merger with MISC’s Offshore Unit

Global OTEC Presents OTEC Power Module for Remote Offshore Platforms

Beam’s AI-Driven AUV to Hit Offshore Wind Market in 2025

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