VARD Holdings, a global designer and shipbuilder of offshore and specialised vessels, announced today it is temporarily laying off its entire workforce at VARD Brevik, in Norway.
The company reported a reduction in turnover in its latest report, mainly due to lower activity levels at the European yards and at VARD Niterói, in Brazil.
“While the offshore market goes through an unprecedented phase of consolidation and restructuring, VARD remains committed to expanding its client base in new market segments, tapping opportunities for growth,” VARD Chief Executive Officer and Executive Director, Roy Reite, said.
VARD Cuts Jobs in Norway and Brazil
According to the company, the challenge is now “to bridge a period of low workload while awaiting the arrival of hulls for new projects from Romania”.
To this end, the firm has decided to temporarily lay off its whole workforce at VARD Brevik.
Vard Brevik Shipyard Offshore Supply Vessels
“Following the delivery of an AHTS for DOF in April, and the completion of outfitting works in relation to a liquefied petroleum gas (LPG) carrier for Transpetro, VARD Niterói in Brazil has closed off all its projects,” the company explained.
Operations at the yard have been shut down and most of the workforce has been terminated following the yard’s closure.
“The offshore oil and gas market remains challenging, and VARD expects limited new contract opportunities from the sector in the near term”, the company informed.
VARD Secured 19 New Contracts in 2016
VARD announced in its financial results for the second quarter and first half of the year that, over the past quarter, it has secured 19 new shipbuilding contracts, “making Q2-2016 the best quarter in terms of order acquisition since 2013”.
The company also secured contracts for 15 purpose-designed Module Carrier Vessels for Topaz Energy and Marine.
“With a long shipbuilding history and experience in building highly-specialised vessels, we look forward to deepening relationships with our new customers, growing the breadth of Vard’s offerings and restoring value for our shareholders,” Reite explained.Last updated on 11:38AM - 23/07/16