Vallianz Holdings streamlines business ops; shuts Singapore shipyard

Jan 9, 2017: Vallianz Holdings has kept under review its business operations and organizational structure in an effort to allay challenges of the slower market conditions in the offshore and marine industry.

As part of a cohesive strategy to streamline its business operations, Vallianz Holdings has initiated the closure of certain non-core business units so that it can re-align its energies to core vessel chartering business.

At the end of 2016, the group terminated operations at its Singapore shipyard following the industry slowdown and discontinuation of business with a key local customer. The weak market conditions have forced the group to consolidate its yard operations at its marine base in Batam, Indonesia. This marine base will continue to service the group's fleet of vessels and support activities required to fulfil its chartering contracts.

The decision to cease the shipyard operations in Singapore follows the closure of the group's businesses in the provision of crew management services to external parties and travel services to the offshore oil and gas industry.

Furthermore, closing the non-core business units is part of a rightsizing exercise that may help save on costs for the group. This may also help it to concentrate its resources on core business units, particularly its profitable vessel chartering operations which are based primarily in the Middle East.

A leaner operating structure and its continuous efforts to maximise operational efficiency will help the group be better positioned to withstand the challenging industry conditions and to sustain its competitiveness in key operating markets.