Neste Oil is set to outsource the ship management functions of Neste Shipping to global offshore and ship management services provider OSM Group, as part of a business transfer agreement.
The outsourcing is part of the company’s plan to exit the shipping business as announced on 19 September 2013.
Under the terms of the agreement, OSM will set up a subsidiary in Finland for the crewing and maintenance of vessels previously under the management of Neste Shipping that continue to be used by Neste Oil.
The agreement will see the transfer of the existing shore and seagoing personnel employed by Neste Shipping’s ship management functions to OSM’s new Finnish subsidiary during spring 2014.
Neste Shipping, which has ship management functions employing around 300 people at sea and 17 people on shore, will retain its chartering functions and integrate into the Neste Oil organisation.
Neste Shipping managing director Arvo Ruotsalainen said: "Norwegian-based OSM was chosen after a careful review of a number of possible partners.
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"We also believe that OSM will be able to offer our fleet personnel a wider range of opportunities than Neste Shipping would have been able to, as a much smaller company in the ship management field."
As part of the plan to outsource the company’s ship management functions, statutory employer-employee negotiations were held during October and November 2013 covering all of Neste Shipping’s shore and seagoing personnel.
Neste Shipping operations restructuring is said to be based on Neste Oil’s desire to reinforce its focus on developing its core business based on cleaner traffic solutions.
Neste Oil will also sell its key vessels to companies jointly owned by Finland’s National Emergency Supply Agency and the Ilmarinen Mutual Pension Insurance, and will set up an asset management company to manage and administer the vessel assets together with the Ilmarinen Mutual Pension Insurance Company and the National Emergency Supply Agency.
Image: Neste Oil’s agreement aims to transfer the shore and seagoing personnel employed by Neste Shipping’s ship management functions to OSM’s new Finnish subsidiary. Photo: courtesy of Neste Oil.