MacGregor said demand for offshore load handling systems is running at a low level and has announced plans to achieve annual cost savings of approximately €13M (US$15M).
According to preliminary estimates, the plan will lead to a reduction of approximately 190 employees globally. MacGregor employed 1,876 people at the end of September 2017.
The objective of the savings is to seek synergies in the company’s offshore and merchant shipping operations and adapt to the prevailing market situation. Another aim is to ensure long-term competitiveness.
MacGregor said its market situation “continues to be challenging.” In the offshore industry, the low price of oil is keeping investment at a low level, which affects demand for offshore load handling solutions. Contracting January to September 2017 in the offshore sector declined compared to the comparable period in 2016.
Overall, demand for MacGregor’s services declined during Q3, especially in the offshore sector.
The company also that said merchant ship contracting improved slightly during January-September 2017, compared to the same period last year, but remained at a very low level.
Cost savings are sought through the planned restructuring of operations and personnel reductions.
It is estimated that the measures will affect operations in Norway, Germany, China and Singapore.