Non-Subscriber Extract
PT Pal streamlines to improve fortunes
By Jon Grevatt
09 October 2009
Indonesia's state-owned shipbuilder PT Pal is to enter a two-year restructuring process next month in a bid to turnaround the company's ailing finances, Jane's has learnt.
A source said that during the process the company is expecting to lose more than half of its 2,400 employees, with a completely new management board. The downsizing of the company is designed to make it more profitable, he said.
"This is a step-by-step process starting from next month," said the source, an executive within the company who spoke to Jane's on the condition of anonymity.
The source added that the impact on naval production during the restructuring is anticipated to be significant.