Press release
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july 28, 2021 - Damen
Reorganization of activity at the Damen Mangalia Shipyard
Mangalia, July 23rd – During today's meeting, the General Meeting of Shareholders approved the reorganization of the Damen Mangalia Shipyard, a plan announced a year ago. This reorganization means the restructuring of 228 jobs.
The reorganization of the business is a direct consequence of the fact that #damen has to adapt to the economic situation in the global maritime sectors. Due to declining demand in the offshore sectors and increased competition from state-supported shipyards in Asia, shipbuilding and repair activities declined dramatically in 2020. This effect was exacerbated by the impact of the Covid-19 pandemic. As such, new shipbuilding orders in Europe fell by 64% in tonnage last year - compared to 2019 (in terms of value: 40% drop).
In response to this situation, #damen had to announce this reorganization on July 6, 2020, which, unfortunately, involved the loss of 642 jobs in Galati and 228 jobs in Mangalia. Also in the Netherlands, several hundred jobs were declared redundant. These reorganizations have already been implemented in Galati and the Netherlands.
In consultation with trade unions and authorities, a social plan will be developed that fully complies with the provisions of the collective labor agreement. Employees affected by the restructuring will receive up to nine compensatory salaries.
"The reorganization is necessary and will allow the possibility of recovery and adaptation to the current situation, so that the other hundreds of jobs are not affected. #damen is a family business with a long-term vision. Romanian shipbuilding plays an essential role in the activity of the #damen group, and the #damen Mangalia and Damen Galați shipyards have a vital importance. This is underlined by the numerous investments we have made in both shipyards", stated Chris Groninger, general manager of #damen Mangalia Shipyard.
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