Shipbuilder IHC Merwede scraps 1,600 permanent, temporary jobs

With reporting by Zack Newmark. IHC Merwede will cut 1,100 temporary jobs and 487 permanent jobs in the latest blow to the Dutch ship industry. The Sliedrecht-based shipbuilder will also close two of their four manufacturing locations, including the facility at Hardinxveld and all production work done near the company's headquarters outside of Dordrecht, Zuid-Holland. The move leaves the Kinderdijk and Krimpen aan de IJssel facilities intact, the company announced Wednesday. Job reductions will mainly concern temporary workers hired to fulfill the one-billion order from Brazilian oil giant Petrobas in 2013, labor union leader Piet Verburg speculated to FD before the cuts were officially announced. One of the main reasons for job cuts is a drop by nearly fifty percent in orders for new oil tanker ships. Due to lower oil prices, companies order fewer freight ships, Verburg, added. Previously, the shipbuilder's CEO Bram Roelse said the company would need to make certain steps to cope with a decline in orders.