SINGAPORE - Offshore-support vessel provider Vallianz Holdings is closing certain non-core business units to allow the group to focus on its core vessel chartering business.
This streamlining of operations was in response to the challenging marketing conditions in the offshore and marine industry, Vallianz said in a filing with the Singapore announced on Friday (Jan 6).
At the end of 2016, the group has ceased operations at its shipyard in Singapore due to the industry slowdown and discontinuation of business with a key local customer, it said.
Vallianz will 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, said Vallianz.
The closure of the non-core business units is part of a rightsizing exercise that is expected to reap cost savings for the group, it added.