Bangkok, 24 August 2011 -- Thoresen Thai Agencies PCL ("TTA") announced a number of changes at its dry bulk shipping business, Thoresen & Co. (Bangkok), Ltd. ("Thoresen"). The changes aim to create a self-sustaining and independent business designed to weather increasingly difficult market conditions and are based on three pillars that include a fleet reconfiguration, the creation of a commercial base in Singapore and a clear separation of functions between Thoresen and TTA that lays the foundation for a rational and commercially viable business.
The dry bulk business will be headed by Mr. Ian Claxton, who joined Thoresen in July 2011 as its Managing Director. Mr. Claxton brings to Thoresen 15 years of hands on management experience in a number of organisations including Neptune Orient Lines Limited, Safmarine, and Anzecs Consortium. He joined Thoresen from his most recent position as CEO and International Managing Director of a shipping and logistics company located in Mauritius, where he was responsible for 450 staff in 26 locations across six countries.
Claxton commented, "I'm thrilled to join the organisation and have the opportunity to work with the professional team at TTA. We have a difficult task ahead, as all major shipping markets, not just dry bulk, continue to be plagued by vessel oversupply, resulting in prolonged weakness in freight rates. I am confident that under the structure being announced today, we'll be able to steer Thoresen back towards operating profitability in what continues to be a difficult environment for the industry at large."
The three pillars of change announced today by TTA will focus on:
"I have full confidence that under Mr. Claxton's capable and experienced leadership, this new strategy will allow us to reshape our dry bulk shipping business in line with increasingly difficult market conditions. Under his stewardship, Thoresen will focus on capturing more business from existing and potential customers while improving its cost efficiencies. We expect these initiatives to accelerate Thoresen's return to operating profitability and generate improved shareholder value," said M.L. Chandchutha Chandratat, TTA's President & CEO.
This new dry bulk shipping strategy represents a significant structural change in the organisation, and is a reflection of the market realities that underlie the dry bulk shipping business. As a result, Thoresen estimates a 20% headcount reduction in its Thailand operations.
"While the loss of any jobs is always regrettable, this difficult decision has been taken after months of careful deliberation and consideration. All affected employees have made a valuable contribution to Thoresen and will be well compensated accordingly, but current business trends dictate a different path forward. TTA will ensure that their transition is as smooth as possible under these trying circumstances," concluded M.L. Chandchutha Chandratat.