Middle EastOffshoreShipyards

Lamprell mothballs Jebel Ali yard and will close Sharjah yard as part of cost saving measures

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.”

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Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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