Spain's Navantia cuts costs and reorganises to 'secure future'

Navantia has announced a major reorganisation of its directors and a new cost-cutting programme in a move aimed at "guaranteeing the future" of the Spanish state-owned shipbuilder.

The company told IHS Jane's on 4 January that the job changes will coincide with the reopening of the yards following the traditional winter holiday period. These would be accompanied by a "rationalisation of production to reduce costs".

Asked what this will involve, a company spokesperson referred only to "cutting production times" on building programmes.

"We are not cutting the workforce or closing yards," he commented, adding that while staff wages remain frozen, there were no plans to reduce pay. The main goal now was to "try to find new clients, and not just for ships".

Navantia describes the changes as a "strategic and operative redefinition" to help overcome the "complicated" financial situation facing the company. It is aimed primarily at "guaranteeing the viability" and future of the yards, which lost EUR43 million (USD56.5 million) in 2011.

While the company declined to give an estimation of 2012 results, national press estimates suggest losses will remain around the EUR40 million mark.