Smit re-structures; to focus on core activitiesNews // October 4, 2001
The revised company strategy focuses on three key objectives: improving profitability; focus more closely on its customers; and increasing transparency.
In order to increase profitability, Smit International will drastically cur back on non-core activities, and increasingly focus on activities based on long-term contracts, including contracts for inshore and offshore terminals.
The Board has also decided to sell off activities which perform poorly and for which Smit International sees insufficient opportunities for the future.
"Smit International will focus on those activities in which it can further increase its existing market share on the basis of existing market position and expertise", said company spokesperson. "This means that Smit International will in future focus primarily on towage services, salvage, transport and heavy lift".
Smit Land & Marine Engineering will cease to be part of the Smit group, which means that there will be a worldwide cessation of horizontal directional drilling, landfalls, outfalls and crossings. The manufacture of pipelines and pipeline bundles is beingterminated.
The three submersible vessels (Smit Express, Smit Explorer and Smit Enterprise) will be sold.
The offshore construction vessel Smit Pioneer will be sold or placed under long-term charter, and the activities of Smit Maritime Contractors will be terminated.
The activities of Smit Fuel will also be terminated.
The number of business units in Europe will be reduced, partly through integration of activities. This will create larger operating companies with a clear focus on a single market segment.
As a result, the operating companies Eerland and Takmarine, active in the Rotterdam region, will become part of larger business units. In addition, Bergings en Transportbedrijf Scheffer (BTS), active on and around the IJsselmeer, will be sold off.
In addition to the earlier announced closure of the sales offices in Oslo and Hamburg, all operational activities in Germany, such as harbour towage services, transport and heavy lift, will also be terminated.