Harland & Wolff has said that it would “rationalize” the number of people working at its Methil facility in Scotland.
This was in response to the contract termination settlement with Saipem over the building of jackets for the Neart na Gaoithe offshore wind farm project in the outer Firth of Forth in Scotland.
Harland & Wolff had, in April 2021, won a contract with Saipem to build and load out eight offshore wind turbine generator (WTG) jacket foundations at it’s Methil facility.
However, Harland & Wolff said in September 2022 that the project – which had a 12-month completion period – had encountered delays due to a number of client materials arriving late and being defective in nature, rendering them incapable of being used.
In a statement issued on February 17, 2023, Harland & Wolff said it had successfully completed the negotiations with Saipem, with the contract value finalized at £16m, “representing approximately 70% of the contract value as per the deed of variation signed in September 2022 as part of descoping from eight jackets to four.”
“The entire amount has now been paid in full and final settlement of the contract [has been reached],” H&W said.
Following the completion of the settlement with Saipem, H&W said that it would “undertake a process of rationalizing the Methil facility’s workforce to approximately 115 core personnel.” It did not say how many people would be laid off. Back when the Saipem contract was first signed, Saipem said the deal would “create around 290 direct and indirect Scottish jobs.”