Loksa Shipyard has announced that it would cut 525 jobs since the shipbuilder lacks orders and is shutting down the enterprise, the Baltic Reports said.
The layoff action began in February to end in April. Only two board members will keep their jobs unless new orders are received. The shipyard has been so far a major employer who created jobs for the locals of this small Estonian town.
Marju Varter, HRD Manager of the shipyard said Tuesday in an interview with Postimees that the Loksa Shipyard has not had any new orders since Q2, 2009. However, the Company is determined to get new contracts to have the workers back.
The company manufactures hatch covers and non-curved steel blocks. Former Odense Steel Shipyard Ltd was renamed after it was acquired by Loksa Invest, a consortium owned by AS Frelok, OÜ Crown Solution and OÜ Stako Diler.
