NAVANTIA takes the course toward its new strategic plan
15 January 2018 | Madrid
Next Monday, 22nd, will take place the first meeting of committee for NAVANTIA’s Strategic Plan 2018-22, which seeks to promote its competitiveness and the company’s future. That day, SEPI and NAVANTIA have summoned the trade unions’ federations which have representatives within the workforce of the shipbuilding company in order to make known to them the Plan’s main lines.
The goal of NAVANTIA, and that of its shareholder SEPI, is that of strengthening the company’s efficiency and feasibility, promoting its impact on the economic areas on which its shipyards are located. For this reason, they have designed a Plan with the ambitious changes which the company requires for adapting itself to the current market conditions and thus, for achieving its feasibility.
These discussions will take place along the following months within a normal working environment. NAVANTIA’s future depends on its Strategic Plan, and it requires the responsibility of all the workforce and its commitment with the company’s future.
The situation in which NAVANTIA finds itself demands that the Company and its employees change and adapt to the market’s new requirements. A Plan agreed by all parties constitutes the best solution for NAVANTIA, for its workers and for the areas which depend on it, according to those in the Company.
A feasible company
NAVANTIA is a company with a future, notwithstanding its current difficult situation, and that future depends on large part on the implementation of the Strategic Plan. It must be mentioned that during the last few years there has been a large fall in new orders, which has resulted in a significant reduction in the order book and in the turnover, of around 50% since 2009. This has provoked that in both domestic and international programs there has been a growing effort in costs and in delivery terms, with the resulting reduction on margins.
NAVANTIA has a workforce in which 68% of its employees are more than 51 years of age, and it requires to adjust the capabilities to the market. The fall of new orders, the growing international competition, and the labor framework have led NAVANTIA to a persistent situation of losses, which has deteriorated its financial position and assets.
The Plan’s axes
The Strategic Plan is based on a Commercial and Operational Plan which seeks to increase the turnover through new orders with the Ministry of Defense, a priority for the Company due to its strategic nature. Furthermore, it seeks to promote military exports, the opportunity civil markets, and the activity in the Systems, Ship Repairs business, as well as NAVANTIA Australia.
The second axis of the Strategic Plan envisages improving the operating efficiency, with a new organization which promotes the business vision, focusing more on product management (Go to Gemba) and on the Profit and Loss Accounts. Besides, it seeks to improve efficiency and productivity, as well as promoting digital transformation towards Shipyard 4.0.
Finally, it seeks to agree a plan for rejuvenating the workforce and a new flexible and competitive working environment for adapting the human resources to the new capabilities which the market demands.