Marine engine manufacturer Rolls-Royce has announced that it has made the decision to suspend operations of its factory in Nanhui, Shanghai in order to deal with the depressed market conditions in the shipbuilding sector.
Rolls-Royce said is has been facing challenges amid reduced demand from the shipbuilding market, especially the offshore vessel market, and it has made the discreet decision to cut costs after evaluation of its global operations.
Most of the employees in the factory will be transferred to other job locations within the group’s operation and will receive compensation.
From now on, Rolls-Royce will gradually reduce its productions from the Shanghai facility and all operations are expected to be suspended in the first quarter of 2017.
Rolls-Royce Marine has been slashing staff across the world for the last 18 months in restructuring efforts designed to try and save the manufacturers £250m a year by next year.