Offshore engineering, procurement, construction firm Lamprell has made the decision to consolidate its operations by mothballing its facility at Jebel Ali.
Additionally, Lamprell’s facility at Sharjah will be closed after the completion of work on the Moray East project.
“The Hamriyah yard is our largest facility and continues to operate, offering various expansion opportunities should the group require additional space. These actions allow for the group to gradually grow fabrication volumes whilst significantly improving efficiency and reducing its cost base,” the company said.
Including the associated significant headcount and allowance reductions, the measures will result in around $23m with of reductions in overheads for 2020. Lamprell said it is also planning for low levels of critical-only capital expenditure at its facilities, with a total value below $10m in 2020.
Further cost saving measures announced include a 25% reduction in fees, salaries and allowances for the board, senior management, and all professional staff by 25% for the next six months. The company is implementing reduced hours and redundancies.
Christopher McDonald, CEO of Lamprell, commented: “We are operating in a period of unprecedented global uncertainty, focusing on the safety and sustainability of our operations and the health and wellbeing of our employees. Amidst industry-wide insecurity and distress, we continue to deliver our projects safely and reliably and we remain focused on strict financial discipline to sustain a healthy balance sheet and progress our strategy.”