Dutch group Damen to lay off 870 at its shipyards in Romania

Dutch group Damen announced that it would cut employment by 1,050 in its 36 shipyards worldwide, out of which 870 will be laid off from its two Romanian shipyards in Mangalia and Galați, Economica.net reported.

The Damen Galati shipyard will fire 547 employees by the end of this year.

Low oil prices resulting in a slowdown in the offshore segment and the COVID-19 crisis have led to the need for short-term organizational changes to ensure that the company adapts to the new reality, the company explained.

Damen Group operates the Damen Mangalia and Damen Galaţi shipyards in Romania.

With an area of 55 hectares and having approximately 2,200 employees, the Damen Galati shipyard is one of the largest production units within the Dutch group.

The Damen Mangalia shipyard is located on the Black Sea coast. It operates as a joint venture between Romania's Economy Ministry and Damen Holding, which took over the operational management of the shipyard in July 2018.

Damen is among the bidders for the EUR 1.6 billion contract for building military multi-role corvettes for Romania.

French Naval Group was declared the winner of this contract, but Damen challenged the preliminary procedures that entitled the Government to organize the tender, so the contract can't be signed yet. Damen was initially assigned the contract with no competitive procedure, but the decision was reversed, and an auction was organized.

Prime minister Ludovic Orban complained recently about Damen's "harassment" in court.

(Photo: Damen Shipyard Galati Facebook Page)