Heerema Marine Contractors (HMC) announced 24 April that it has decided to close its offshore pipe laying business with immediate effect. This follows a review by the company of its position in the ‘highly competitive pipe lay market’, which it says continues to suffer from overcapacity.
350 jobs will go with the along with the business.
This move follows an October 2017 announcement that HMC would be restructuring its business to address low oil prices and low investment in the oil and gas industry. The goal is to adapt HMC to ‘decreased work volumes’ and enhance cost efficiency and competitiveness.
The company says that it will now focus on the transport and installation of offshore structures, decommissioning of platforms and the execution of projects in the renewables sector.
HMC chairman Pieter Heerema said in a statement: “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.” Heerema is to become CEO of the company following changes to HMC’s board and management structure.