Cites global trade uncertainties, “challenging” market conditions
Citing global trade uncertainties that are causing “massive reductions” in demand for marine propulsion systems, Schottel said it is cutting 150 of its 950-person workforce.
The company, headquartered in Spay, Germany, is a market leader for azimuthing propulsion systems and said it has weathered for years a market environment weakened by the decline of offshore oil and gas production with what it called a progressive product policy and a pronounced customer focus
The company said has been able to gain market shares in recent years and that it has invested heavily, including for an advanced factory for marine propulsion systems in n Emmelshausen/Doerth, Germany, and additional locations in Wismar, Germany, and Suzhou, China.
Although Schottel closed the financial year 2018 with a good result, “political conflicts in international trade and the associated global uncertainties are causing massive reductions in investments and demand for marine propulsion systems,” the company reported in a news release. To ensure that Schottel remains sustainably successful and to underpin its good competitive position, a comprehensive optimization program has been initiated within the company. This includes both growth initiatives as well as measures for enhancing the efficiency of corporate processes and structures.
In connection with the core competence in marine propulsion, opportunities for growth in hybrid technology, in intelligent data collection, diagnosis and assistance systems as well as in digital products have been identified and strategies developed to create additional customer value, Schottel said. The large Schottel installed base that has grown over decades offers promising potential with a focus on the upgrade and modernization market, the company said.
But in order to further adapt to the changing market conditions reductions in headcount cannot be avoided, the company said. Approximately 150 of the 950 jobs of the maritime group worldwide will be affected by this measure. The German Schottel sites in Spay, Doerth and Wismar with currently around 750 jobs will be affected with about 90 job cuts in total. A large number of the job losses will be covered through social plans such as early retirement arrangements.
The aim of the measures is to strengthen the company’s competitiveness in current challenging market conditions, the company said.
The Schottel Group was founded in 1921 and has been developing and manufacturing azimuth propulsion and complete propulsion systems with power ratings of up to 30 MW for vessels of all sizes. Around 100 sales and service locations worldwide ensure customer proximity.