Singapore-based offshore services provider Vallianz has closed its shipyard in Singapore as part of its strategic business review in response to the market environment.
The company informed on Friday that, to mitigate the challenges of slower market conditions in the offshore & marine industry, the group has been implementing a strategy to streamline its business operations. Its latest initiatives include the closure of certain non-core business units that will allow it to focus its resources on its core vessel chartering business.
In line with that strategy, at the end of 2016, the group has ceased operations at its shipyard in Singapore due to the industry slowdown and discontinuation of business with a key local customer. In view of the current weak market conditions, the group has decided to consolidate its yard operations at its marine base in Batam, Indonesia, Vallianz said.
According to the company, this marine base will continue to service the group’s fleet of vessels and support activities required to fulfill its chartering contracts.
The decision to cease the shipyard operations in Singapore follows the closure of the group’s businesses in the provision of crew management services to external parties and travel services to the offshore oil and gas industry.
The company noted that the closure of these non-core business units is part of a rightsizing exercise that is expected to reap cost savings for the group. In addition, these initiatives will enable the group to concentrate its resources on core business units, particularly its profitable vessel chartering operations which are based primarily in the Middle East.
Vallianz explained that this will position the company to withstand the challenging industry conditions and to sustain its competitiveness in key operating markets.