Heerema to axe 350 jobs following decision to exit offshore pipelay activities

Dutch Heerema Marine Contractors (HMC) will discontinue its offshore pipelay activities as a further step in its strategic transition, which will result in a loss of 350 permanent jobs. 

The decision follows a further review and commercial evaluation in early 2018 of HMC’s current position in the highly competitive pipelay market which continues to suffer from significant overcapacity, the company said on Tuesday, April 24.

The company also said that, following this strategic decision, around 350 permanent jobs in Heerema Marine Contractors will be phased out with compulsory redundancies being unavoidable. All changes are subject to consultation with relevant stakeholders. As a first step the company will seek advice from their Works Council in The Netherlands.

Following the termination of the pipelay activities, Heerema Marine Contractors said it would be focusing entirely on its core business of Heavy Lift, Decommissioning and Renewables.

Heerema Marine Contractors will cease its pipelay activities with immediate effect honoring however its current commitments in ongoing projects. Furthermore, the company will convert its deep water construction vessel Aegir to a fast sailing heavy lift vessel.

Future setup

Heerema Marine Contractors’ intended future setup will be structured around the business areas of transport and installation of offshore structures, decommissioning of platforms and the execution of projects in the renewables sector.

In addition, the company’s board and management structure will be simplified and streamlined. During the transition period Pieter Heerema, chairman, will take up the additional de facto role of chief executive of Heerema Marine Contractors prior to the appointment of a permanent CEO.

Commenting on the announcement Pieter Heerema said: “Dictated by the difficult market conditions we have to change into a different kind of organization. I deeply regret the consequent loss of trusted and professional colleagues who have helped building our strong reputation in the offshore (pipe lay) market. At the same time we have to continue our process of transforming into a marine contractor which is leaner, more efficient and capable of benefiting from the opportunities the offshore market still represents.”

It is also worth mentioning that HMC’s CFO, Frans den Houter, recently decided to resign to further his career outside the company.