Tuesday, October 19, 2021

“Significant reduction in headcount” expected as Uniper reveals plans to restructure engineering business

Following a strategic review, Uniper has announced plans to fundamentally restructure its Engineering business, which has a location in Ratcliffe-on-Soar.

Uniper’s current, stand-alone Engineering business provides services both to Uniper’s own fleet and to Uniper customers, across a range of power generation technologies. The business consists of several legal entities, with a total of about 1,100 employees, mainly located in Germany and the UK.

Uniper said that despite continuous alignment with changing market conditions, the pursuit of new business opportunities, and individual successes and improvements, the Engineering business has not yet achieved an independent financial contribution to the Group result.

Considering a difficult service market environment and a disadvantageous cost position, the recent review determined that a stand-alone Engineering business in the current setup will be unable to meet Uniper’s strategic and financial expectations.

The new plans foresee that in future the company’s engineering competencies will be solely focused on Uniper’s own asset operation and its growth priorities of decarbonization and green customer solutions. Customer business will concentrate on Hydrogen, Renewable Energies, Industrial Customer Solutions (ICS), and Net Zero Solutions. This is to provide Uniper’s customers with a clear strategic focus and a holistic approach in these areas going forward.

Service business in the conventional sector will be discontinued and limited to engineering services for operators of nuclear facilities as another new strategic business field. All ongoing projects will be finalized and closed out as contractually agreed, and customers will be individually approached in due course about the potential impact of the plans on existing co-operations.

The implementation of these plans will involve wide-ranging organizational changes and a significant reduction in headcount including divestment of individual business activities. The affected colleagues have been informed about these planning decisions.

In the coming months, the detailed organizational changes and a fair process for their implementation will be worked out, in close coordination with the competent co-determination bodies. The next information on the results and further steps is expected for the first quarter of 2022.

Uniper COO, David Bryson, said: “We are making these decisions with all due respect for the affected employees’ performance and in the awareness that they will be accompanied by far-reaching individual consequences and personal changes.

“We, the Uniper Board of Management, and the management teams of the affected units will ensure, in close cooperation with co-determination, that a fair process is set up to achieve these necessary changes whilst avoiding hardships where possible.

“However, we are taking these steps in order to realign engineering competencies for a sustainable future within Uniper. In this way, we are following our decarbonization strategy, in the interests of our own assets and our customers.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.