Keppel Cebu to lay-off staff and exit shiprepair
KEPPEL Cebu Shipyard is laying-off around half its workforce and exiting shiprepair as its Singapore parent seeks to reduce overcapacity in the Philippines market, writes Marcus Hand in Singapore. Keppel Cebu is closing down its shiprepair operations to focus on specialised shipbuilding for both the Philippines domestic market and the international market. Keppel Philippines Marine said the decision was taken in the light of declining domestic demand for shiprepair and to reduce excess capacity in the market. The shipyard operator will continue shiprepair operations at its Batangas and Subic Bay yards.
As a result of the switch from shiprepair to shipbuilding at Keppel Cebu about half of the yard’s workforce, reported locally to be 400 in total, will be laid-off. “As certain specialised trades and skills in shiprepair are no longer needed for shipbuilding, the company intends to rationalise its workforce. We have discussed with the Workers Union and have offered a comprehensive compensation package for employees who avail themselves to this package,” said Keppel Cebu president David Loh. The employees facing lay-off from the Cebu yard are being offered jobs at other Keppel yards in the Philippines and overseas. Keppel said that it was upgrading the Cebu yard to equip it for specialised vessel construction.
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