Dutch group Damen announced that 228 employees at its shipyards in Mangalia would be made redundant - after another 642 at its Galati shipyards were sent home last year.

Under the decision passed by the general shareholder meeting on July 22, the 228 employees made redundant will receive severance payments in the amount of nine monthly wages, News.ro reported.

"The reorganization of the business is a direct consequence of Damen having to accommodate the economic situation in the global maritime sectors. Due to declining demand in the offshore industries and increased competition from state-supported shipyards in Asia, shipbuilding and repair activities decreased dramatically in 2020. This effect was exacerbated by the impact of the Covid-19 pandemic. As a result, new shipbuilding orders in Europe fell by 64% in tonnage last year compared to 2019 (in value terms: 40% decrease)," reads the company's press release.

andrei@romania-insider.com

(Photo source: Facebook/Damen Shipyards Galati)