Thursday, 18 June 2009
TORM announced the launch of a comprehensive efficiency programme - Greater Efficiency Power - in order to take full advantage of the global reach the Company has gained from the recent years’ acquisitions and strong growth. When fully implemented in 2010, the programme is expected to contribute with annual cost savings of USD 40-60 million.
As part of the programme, TORM has re-organized its global set-up of crew and fleet management to better support commercial requirements and to align with TORM’s overall strategy. Likewise, support functions will be further centralized to achieve synergies and better utilize the global IT platform. Further standardization of maintenance as well as crew optimization will not only secure reductions in operating expenses, but also improve efficiency and enhance the quality of TORM’s service to the benefit of the customers.
As a result of the rollout of Greater Efficiency Power, 35 land-based employees throughout the organization will be made redundant over the coming months, corresponding to approximately 10 percent of all onshore staff. “A plan like Greater Efficiency Power is a logical and necessary consequence of the strong growth TORM has experienced in the past five years and has been planned prior to the economic slowdown. This is also meant to create the foundation for TORM’s future growth,” CEO Mikael Skov says. The net effect of the above will have no influence on TORM’s 2009 pre-tax profit forecast of USD 100-140 million incl. sale of vessels as stated on 9 June 2009
Source: TORM
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