Kvaerner's company restructure casts off shipbuilding businesses
15 Jan 2000
The troubled Anglo-Norwegian industrial engineering group Kvaerner is making major structural changes as part of a cost-cutting plan to reduce debt. 2000 workers in Glasgow's Govan ship yard will bear the brunt of the company's complete withdrawal from shipbuilding.
Kvaerner is now focusing on engineering, contracting and construction services. Non-core assets and businesses will also be sold off to reduce debt by £280million while the total workforce is to be cut by 25,000, from 80,000 to 55,000.
Kjell Almskog, the chief executive recruited last year to overhaul the company, said the `plan for this "new Kvaerner" is to create a group that is significantly smaller and much leaner, but infinitely stronger.'
