Kvaerner announces a new and global strategy in a changing market

Nov 15, 1999 01:00 AM

Anglo-Norwegian engineering construction group, Kvaerner, has announced a new strategy to revamp its global oil and gas operations in an attempt to regain profitability. The company says the launch of the new strategy has been designed with two clear priorities.
The first is to service the needs of a developing industry and market by changing Kvaerner's emphasis from North Sea to international operations.
The second is to make a significant shift from large-scale fabrication projects to sub-sea and process technologies.
The company also plans to combine and refocus its UK/Norwegian business strategies by replacing them with a single capital development projects business together with an offshore and onshore operational services business.
In a statement, details of further staff redundancies are also revealed.
It says, "In addition to staff reductions previously announced and currently being implemented in Norway and the UK, further reductions may be necessary at other locations,as existing engineering work for capital projects winds down," A spokesman for Kvaerner told, "As a result of excess capacity, we are currently reviewing other yards on the basis of the current work program. For example, the Fyfe metal yard has only enough work to keep it functioning until the end of the second quarter this year. It is too early in the review to tell which operations, if any, will close as a result of the new strategy."
He added, "The market is moving forward, but not with the use of large field development projects and we are adjusting the business to meet market demand. Consequently in the future we plan to take the emphasis from North Sea projects to balance on international work. "We also aim to take the emphasis away from field development projects and to focus more on sub-sea technology where we are leaders in certain sectors. Hence, Kvaerner has announced this restructure to meet the new shape of the market."

Source: IINX via Iinoil
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