SINGAPORE (Jan 6): Vallianz Holdings, the offshore support vessel provider, ceased operations at its shipyard in Singapore at the end of 2016, due to “the industry slowdown and discontinuation of business with a key local customer”.

The latest decision follows Vallianz’s closure of its non-core businesses, namely in the provision of crew management services to external parties as well as travel services to the offshore oil and gas industry. This comes as part of a rightsizing exercise that is expected the reap cost savings for the group by allowing it to focus its energies and resources on its core vessel and chartering businesses.

In a Friday pre-market announcement, the group explains that its move to cease shipyard operations in Singapore resulted from an ongoing strategic review of its business operations and organisational structure, “in response to the requirements of the external operating environment”.

Vallianz hence intends to consolidate its yard operations at its marine base in Batam, Indonesia, which will continue to service its fleet of vessels and support the activities required to fulfil its chartering contracts.

“These initiatives will enable the group to concentrate its resources on core business units, particularly its profitable vessel chartering operations which are based primarily in the Middle East,” comments Vallianz.

“With a leaner operating structure and its continual efforts to maximise operational efficiency, the group will be better positioned to withstand the challenging industry conditions and to sustain its competitiveness in key operating markets.”

Shares of Vallianz closed flat at 2 Singaporean cents on Thursday.