29 Nov 1999

Keppel Hitachi Zosen Group to save S$5 million with lower headcount

The sale and purchase of Keppel Marine Industries Limited's marine-related businesses to Keppel Hitachi Zosen Limited (Keppel Hitachi Zosen) for approximately S$167 million in cash has been completed today.

Following the consolidation of Keppel Shipyard (Pte) Ltd, Hitachi Zosen Singapore and Keppel Singmarine Dockyard Pte Ltd, under Keppel Hitachi Zosen, the Keppel Group is rationalising its operations to remain competitive.

"Keppel has carried out a reduction of headcount in the three yards which will result in savings of about S$5 million a year.

"We will further restructure to bring all our overseas shipyards in the Philippines under Keppel Hitachi Zosen to realise our aim of becoming the regional leader in shiprepair and conversion and builder of specialised and medium-sized vessels," said Mr Charles Foo, Managing Director of Keppel Hitachi Zosen.

The Management of Keppel Hitachi Zosen has worked with the Ministry of Manpower, National Trade Union Congress and the Economic Development Board to find alternative employment opportunities for the affected employees.