WILLEMSTAD – Damen Shipyards gives its daughter company Damen Shiprepair Curaçao one more chance to recover from the losses. This year the shipyard should finally make a profit, or at least break even. This is according to the maritime magazine Schuttevaer in the Netherlands.
WILLEMSTAD
– Damen Shipyards gives its daughter company Damen Shiprepair Curaçao one more chance to recover from the losses. This year the shipyard should finally make a profit, or at least break even. This is according to the maritime magazine Schuttevaer in the Netherlands.
The Curaçao shipyard, which has been ailing for some time, made a loss of about 5.5 million euros. According to Schuttevaer, that loss was in reality considerably greater, because Damen Nederland wrote off approximately 20 million euros in previously issued loans at the end of last year.
The Curaçao shipyard, which has been ailing for some time, made a loss of about 5.5 million euros. According to Schuttevaer, that loss was in reality considerably greater, because Damen Nederland wrote off approximately 20 million euros in previously issued loans at the end of last year.
Damen took over the yard from the Curaçao government in 2017. Het Dok, as the yard is known, had already been loss-making for years. Reason for the island government to sell the company, also because heavy investments would have to be made to modernize the outdated yard and make it healthy. Damen Shipyards Group saw potential in this, but was faced with all kinds of setbacks and disappointing results.
Damen took over the yard from the Curaçao government in 2017. Het Dok, as the yard is known, had already been loss-making for years. Reason for the island government to sell the company, also because heavy investments would have to be made to modernize the outdated yard and make it healthy. Damen Shipyards Group saw potential in this, but was faced with all kinds of setbacks and disappointing results.
Dock trouble
Dock trouble
The closure of the large Isla refinery on the island, the international sanctions against Venezuela and the consequences of the corona pandemic played tricks on the yard.
The closure of the large Isla refinery on the island, the international sanctions against Venezuela and the consequences of the corona pandemic played tricks on the yard.
To make matters worse, one of the two floating docks was damaged by an incorrectly unpacked dock, which meant that they could only run at half power. The other dock also constantly suffered from defects and eventually sank during work.
To make matters worse, one of the two floating docks was damaged by an incorrectly unpacked dock, which meant that they could only run at half power. The other dock also constantly suffered from defects and eventually sank during work.
As a result, Damen only has the two existing but outdated fixed docks at its disposal. All these problems led to 78 employees having to be laid off last year.
As a result, Damen only has the two existing but outdated fixed docks at its disposal. All these problems led to 78 employees having to be laid off last year.
Rescue operation
Rescue operation
The round of layoffs is part of a rescue operation, for which the parent company must pay around 18 million euros. The Curaçao government had to come up with the same amount, but because it does not have that money, the Dutch government has taken a large part of it, says Schuttevaer.
The round of layoffs is part of a rescue operation, for which the parent company must pay around 18 million euros. The Curaçao government had to come up with the same amount, but because it does not have that money, the Dutch government has taken a large part of it, says Schuttevaer.
The money will be released this year and is intended for the necessary modernization of the yard. The money may not be used to cover shortfalls.
The money will be released this year and is intended for the necessary modernization of the yard. The money may not be used to cover shortfalls.
In Damen Nederland’s policy plan, the future of the Caribbean problem child is viewed with optimism.
In Damen Nederland’s policy plan, the future of the Caribbean problem child is viewed with optimism.
Although we still have several challenges to overcome, we are on the right track. To add right away that this means that the shipyard in Curaçao must stand on its own two feet this year and no longer have to count on extra money.
Although we still have several challenges to overcome, we are on the right track. To add right away that this means that the shipyard in Curaçao must stand on its own two feet this year and no longer have to count on extra money.
Staff
Staff
Damen Curaçao currently employs 180 people on a permanent basis. In addition, about 40 people work for the company via subcontractors and there are 100 on-call workers who can be deployed during busy times. According to Schuttevaer, new forced redundancies are not an issue for the time being.
Damen Curaçao currently employs 180 people on a permanent basis. In addition, about 40 people work for the company via subcontractors and there are 100 on-call workers who can be deployed during busy times. According to Schuttevaer, new forced redundancies are not an issue for the time being.
https://www.curacaochronicle.com/post/main/patience-for-damen-shiprepair-curacao-is-running-out-at-parent-company/
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