Clipper Group subsidiary Clipper Bulk has announced a substantial reorganisation to combat the continued weak dry bulk market.
The changes will see an injection of working capital, the downsizing of staff and its office network, as well as changes to senior management.
Peter Norborg, CEO of Clipper Group, commented: “We have been challenged by the steep, unexpected market downturn. Today, we are taking the steps required to run a viable, profitable dry bulk operation, even in depressed markets. We are establishing a platform, which will allow us to fully benefit from Clipper’s positions of strengths in various trades and geographies.”
As part of the downsizing, Clipper Bulk is cutting around 40 of the 140 shore-based jobs, of which 28 are from head office in Copenhagen. The Tokyo office will be closed and the Nassau office will be transferred to a local representative. The changes will give Clipper Bulk three main hubs – Copenhagen, Houston and Hong Kong – while it will also retain a local office in Colombia.
”While we deeply regret the implications for competent and loyal staff, the downsizing is essential to adapt both costs and structures to prevailing market conditions. We will do our best to support the ones affected,” said Norborg.
A new senior management team has been put together, led by Norborg as CEO with Amrit Peter Kali as COO and Anders Bruun as head of business development.
The team will work on making Clipper a more focused and specialised dry bulk operator, the company said, and it will continue to develop its niche businesses such as Clipper Steel, Compass Rose, China Parcel and Brazil Steel.
Clipper Bulk specialises in the handysize and supramax segments, and currently operates around 80 vessels including those in its two pools.