MacGregor announces a plan to achieve annual cost savings of approximately EUR 13 million
CARGOTEC CORPORATION, PRESS RELEASE, 9 NOVEMBER 2017 AT 10:00 AM EET
MacGregor, part of Cargotec, is announcing planned measures to achieve annual cost savings of approximately EUR 13 million and begins statutory cooperation negotiations. The plans include the split of Smart Ocean Technology division into Cargo Handling division and Advanced Offshore Solutions division.
According to preliminary estimates, the planned efficiency improvement actions may lead to the reduction of approximately 190 employees globally. MacGregor employed globally 1,876 persons at the end of September 2017.
The objective of the savings is to seek synergies in both the offshore and merchant shipping operations and adapt to the prevailing market situation faced by MacGregor. In addition, the aim is to ensure long-term competitiveness on global markets and to continue the improvement of operational efficiency and customer centricity.
MacGregor's market situation continues to be challenging. Merchant ship contracting improved slightly during January-September 2017 compared to the same period last year, but remained at a very low level. In the offshore industry, the low price of oil keeps investments at an unprecedentedly low level, which affects the demand for offshore load handling solutions. Contracting during January - September in the offshore sector declined compared to the comparison period in 2016. The demand for MacGregor's services declined during the third quarter especially in the offshore sector.
Cost savings are sought through the planned restructuring of operations and potentially with personnel reductions. It is estimated that the measures affect especially the operations in Norway, Germany, China and Singapore.
The planned savings measures are estimated to be reached in 2018. They are expected to result in restructuring costs of 7 MEUR in the final quarter of 2017.
"These planned measures are necessary to manage the continuing challenging market situation and to maintain our leading position in the maritime cargo flow, mooring and load handling markets. As a result of these difficult but necessary actions MacGregor will be able to continue to develop the company to be the leader in smart cargo and load handling. Consequently we are able to help our customers to develop their operations to be more efficient without compromising safety and eco-efficiency," says Michel van Roozendaal, President of MacGregor.
Michel van Roozendaal, President, MacGregor, tel. +65 8533 2742
Minna Karhu, Vice President, Communications, MacGregor, tel. +358 20 7774500
MacGregor shapes the offshore and marine industries by offering world-leading engineering solutions and services with a strong portfolio of MacGregor, Hatlapa, Porsgrunn, Pusnes and Triplex brands. Shipbuilders, owners and operators are able to optimise the lifetime profitability, safety, reliability and environmental sustainability of their operations by working in close cooperation with MacGregor.
MacGregor solutions and services for handling marine cargoes, vessel operations, offshore loads, crude/LNG transfer and offshore mooring are all designed to perform with the sea. www.macgregor.com
MacGregor is part of Cargotec. Cargotec's (Nasdaq Helsinki: CGCBV) sales in 2016 totalled approximately EUR 3.5 billion and it employs over 11,000 people. www.cargotec.com