700 jobs to be axed at STX Finland

A company statement indicated that the company’s board reached the decision unanimously yesterday after demand was deemed insufficient for the upkeep of both Rauma and Turku shipyards. As well as the majority of work being transferred to Turku, 700 people at both yards will be made redundant by next June.

“We regret having to make such tough decisions that will hit the Rauma Shipyard especially hard,” said Jari Anttila, STX Finland deputy ceo. “But the alternative would have been the shutting down of the Finnish shipyard industry and the ending of our 300-year heritage of shipbuilding. These decisions will enable a healthy and profitable shipyard industry to flourish in Finland.

“The decisions made now are based on a realistic estimate of the company’s current state and the market outlook. They will halt the company’s vicious circle of losses, now in its sixth year, and lay the foundation for a profitable business.”