Royal IHC has informed that, due to persistently poor market conditions, it will be making additional capacity adjustments, which will have an impact on around 425 employees in The Netherlands.
The company said it will hold staff meetings at all locations today where the management will provide staff with further details of its intentions.
The Works Council and trade associations have been notified about the plans for downsizing. IHC said it has agreed with the Works Council and trade associations on a series of dates to discuss the timeline and conditions.
“The management fully understands the major consequences the necessary measures will have for many employees. Of course, any IHC staff who become redundant will be given full support in moving towards the next step in their careers,” the company said in a press release on Friday.
The company added that its section-building activities will be further outsourced in order to respond to competition from Eastern Europe and Asia. IHC will maintain the shipbuilding slipway in Krimpen as its main slipway. The Kinderdijk slipway will be maintained as a reserve.
The executive board is being reduced to two members: CEO Dave Vander Heyde and CFO Arie Vergunst.
In the period ahead, IHC said it will be focusing on boosting its sales activities and work towards expanding international activities. In addition, IHC units, such as Beavers, IQIP and Services, will be given space to maximise their potential for growth.