Norwegian shipbuilder Vard Holding has announced a new diversification strategy aimed at reducing its dependency on the offshore business during the industry downturn.
Vard said it aims to penetrate markets for specialized vessels in the offshore wind and aquaculture markets, and develop a broader product offering to the aquaculture industry. Geographically, the group will increase its focus on the Middle East region, where it expects comparatively strong demand for OSCVs and other specialized vessels from the offshore industry.
The group said that it aims to preserve its core expertise and skilled employee base during the downturn, and utilize its existing yard capacity until an eventual recovery in its core market.
“The Group’s efforts to diversify are well underway, and we believe that we are on the right track to recovery. If we succeed with our plan, VARD will not only be able to emerge from this downturn, but come out stronger and armed with new skills and capabilities,” said Roy Reite, chief executive officer of Vard.
Vard recorded a net loss of NOK1.29bn ($148.7m) for the year of 2015, compared to a profit of NOK50m ($5.76m) for 2014.
