Odense Steel Shipyard terminates shipbuilding activities

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Odense Steel Shipyard is closing down its shipbuilding capacity having run up considerable annual deficits, and despite a continued struggle to stay afloat it has realised the impossibility of attracting orders which are commercially sound, A.P. Møller – Mærsk has announced.

Expansion of shipyard capacities in low cost countries in the Far East has created a competitive situation for the shipbuilding industry which has proved fatal for Odense Steel Shipyard, and investments in new technology and streamlining of production have proved a futile attempt to survive in such dire circumstances.

Consequentially, the yard is discontinuing all its shipbuilding activity once the current contracted orders have been fulfilled, the last newbuilding of which is expected to be delivered in February 2012.

The end of shipbuilding for Odense Steel Shipyard means there is no longer a need for ownership of the Lithuanian shipyard, Baltija Shipyard, and therefore the company has been put up for sale alongside the design and engineering company, UAB Baltic Engineering Centre in Lithuania.

The Board of the yard has stated that due its ceased operations, “the present workforce will be continuously downsized to accommodate production. The first redundancies of approximately 175 employees are expected to take place from the end of August this year.”