Order depletion leads to closure of veteran Norwegian offshore shipyard
2018-06-06 09:00
Due to a long-term downturn in the offshore market leading to a lack of orders, Simek, a renowned Norwegian offshore support vessel (OSV) builder, has finally closed after 51 years of operation.
According to Norwegian media reports, Simek shipyard currently has zero orders. Simek has been seeking solutions to address the issue of dwindling orders, but has not yielded any results.
Simek CEO Oyvind Iversen said that it is sad to end this way as a company that has been operating for over 50 years.
Iversen said that Simek shipyard has been struggling in recent years, suffering significant losses; in the spring of 2015, Simek delivered a large-medium platform supply vessel (PSV), at which time the shipowner abandoned the construction contract, and Simek had to bear huge losses.
Last September, Simek laid off all 150 employees due to lack of work. At the time, Iversen said that once Simek found new work, it would start re-hiring workers as soon as possible. Iversen said that Simek hopes that one day all employees can return to the shipyard, but he also pointed out that the industry is facing difficulties after Norway's oil crisis, and many shipyards are struggling to survive.
Simek's last vessel was delivered in January 2017, a PSV ordered by US offshore vessel owner GulfMark Offshore. Clarkson's data shows that over the years, Simek has built 41 merchant ships, including PSVs, AHTSs, ferries and tugboats.
It is understood that Simek shipyard was established in 1967 in the center of Flekkefjord. In April 1968, Simek shipyard delivered its first vessel. In 1971, Simek relocated to the outskirts of Flekkefjord. In March 1976, Simek delivered its first OSV, the Stad Breeze. In March 1991, Simek delivered its first AHTS, the Far Sea. In July 2013, Simek delivered the 96-meter-long PSV North Pomor, the largest vessel Simek has ever built.
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