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INCORPORATING

INVESTMENT PAYS OFF FOR SCHOTTEL, BUT JOB CUTS ARE ON THE WAY

Friday, August 23, 2019 

Schottel, headquartered in Spay, Germany, says it has been defying a market environment weakened by the collapse of offshore business (oil and gas production) with a progressive product policy and a pronounced customer focus.

Contrary to the industry trend, Schottel has been able to gain market shares in recent years, thanks to investing heavily during this time. In Emmelshausen/Doerth, Germany, the largest and most advanced factory for marine propulsion systems has been built and with additional locations in Wismar, Germany, and Suzhou, China, a large capacity for propulsion systems for the world market is available.

Schottel closed the financial year 2018 with a good result. However, political conflicts in international trade and the associated global uncertainties are causing massive reductions in investments and demand for marine propulsion systems. To ensure that Schottel remains sustainably successful and to underpin its good competitive position, a comprehensive optimisation program has been initiated within the company. This includes both growth initiatives as well as measures for enhancing the efficiency of corporate processes and structures.

In connection with the core competence in marine propulsion, opportunities for growth in hybrid technology, in intelligent data collection, diagnosis and assistance systems as well as in digital products have been identified and strategically developed to create additional customer value. The large Schottel installed base that has grown over decades offers promising potential with a focus on the upgrade and modernization market.

In order to further adapt to the changing market conditions reductions in headcount cannot be avoided. Approximately 150 of the 950 jobs of the maritime group worldwide will be affected by this measure. The German Schottel sites in Spay, Doerth and Wismar with currently around 750 jobs will be affected with about 90 job cuts in total. A large number of the job losses will be covered through social plans such as early retirement arrangements.

The aim of the measures is to strengthen the company’s competitiveness in current challenging market conditions.

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