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Thu 14 Jan 2010 11:37 AM

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Dubai World subsidiaries downsized

Two divisions of Drydocks World merge with shipyard as ops scale down.

Dubai World subsidiaries downsized

Dubai World subsidiaries Palm Marine and Platinum Yachts are being downsized as a result of reduced demand amid the global financial crisis, officials have said.

The companies, both divisions of Drydocks World, itself a part of Dubai World, have been merged with the government-owned shipyard Jadaf Dubai, from where they are now operating.

Geoff Taylor, group CEO of Drydocks World confirmed the move, saying the decision to scale back operations was made in December.

“It has absolutely nothing to do with Dubai World debt,” Taylor told Arabian Business.

“We have had to downsize the operations in the current economic crisis there’s no demand for the product. This has been going on for an extended period and we have had to make the decision to radically downsize,” he said.

“It’s a worldwide problem. It’s not just a Dubai based problem,” he added.

While Dubai World $26bn debt issues, linked to its real estate subsidiaries Nakheel and Limitless, have been much-publicised, the conglomerate’s Drydocks World unit is believed to be financially healthy.

Mike Meyer, a divisional manager of Platinum Yachts, said: “There’s been a bit of reshuffling that’s gone on but its business as usual.”

The Palm Marine and Platinum Yachts downsizing will affect about 120 members of staff, Taylor said.

“There will be some casualties,” he admitted, “but we’re trying to mitigate that as much as we can.”

He said the company’s intention was to retrain as many employees as possible, without giving actual numbers of staff who would lose their jobs.

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