Lamprell plans to shut two of its three facilities in the UAE in an effort to reduce overheads, media reports said. The company specialises in the oil rig construction business in the emirate.
In January, Lamprell closed its Jebel Ali facility and the Sharjah facility will be shuttered following the completion of work on Moray East offshore wind farm. However, its largest facility the Hamriyah yard will remain open.
The company is expected to consolidate operations in the Hamriyah yard, while closing the other two facilities. It is reported that the shutting down of its facility could allow it to gradually increase fabrication volumes improve efficiency and cut cost base.
Lamprell’s CEO Christopher McDonald, told the media, “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.”
The company has been able to save funds with 25 percent reduction in fees and salaries for the board, senior management, and professional staff over the next six months.
In 2017, a joint venture was established by Lamprell to set up and operate a maritime yard in the Kingdom of Saudi Arabia. The company comprised more than 4,000 people across its various facilities, media reports said. It will continue the construction of two Keppel LeTourneau Super 116E jack-up drilling rigs for International Maritime Industries (IMI) and the Moray East project.