Somewhat amazing news. The Odense Steel Shipyard (Lindø) will discontinue its shipbuilding activities once the yard has fulfilled its contracted orders.
And it is closing down and getting out of the business due, in great part, to China’s determined attempts to become the world’s biggest shipbuilding nation. This has caused the competitive situation for the shipbuilding industry to become increasingly difficult and has zapped Odense Steel.
Regardless of the huge effort to improve the Odense Steel Shipyard’s competitiveness with investments in new technology and production streamlining, the yard has not only run up considerable annual deficits but also realises that it is impossible to attract orders that are commercially sound.
Once the yard has completed its contracted orders, its shipbuilding activities will be cease. The current workforce will be continuously downsized to accommodate production.
The contracted orders — five bulk carriers, seven ro-ro ships and three frigates — extend to August 2010, November 2011 and February 2012, respectively.
Eye for Transport states that with the discontinuation of the shipbuilding activities at Lindø, there is no longer a need for ownership of the Lithuanian shipyard, Baltija Shipyard or the design & engineering company UAB Baltic Engineering Centre in Lithuania, and these companies are up for sale.