Naval Group’s subsidiary for marine renewable energies Naval Energies is planning to reduce its workforce due to slower market development than previously anticipated.
Naval Energies said it is preparing to cut around 100 jobs, to be split evenly between the company’s operations in France, and in Ireland through subsidiary OpenHydro, starting in the first half of 2018.
The company added it began discussions with the workers’ representatives regarding the implementation of the personnel reduction process.
Naval Energies attributed the move to slower than expected development of marine renewable energies market, linking it to lack of visibility of the political will of certain states, including France.
According to French media reports, the decision to reduce the workforce may be in part related to the absence of new tender announcements for marine renewable energy projects that were expected to be made by the French Prime Minister Edouard Philippe during the Conference on the Economics of the Sea, held in Le Havre earlier in November.
However, Naval Energies added it remained committed to the demonstration projects in France, Canada in Japan.
Also, the company noted it is moving forward with the construction of tidal turbine assembly plant in Cherbourg, which should be ready in spring 2018.
“The new strategy aims to focus resources, both financial and human, on the highest-priority projects in tidal turbines, floating wind turbines and ocean thermal energy conversion.
“Our priority is to ensure the success of our demonstration projects in Canada and Japan, and prepare the ramping up of the Normandie Hydro project in the Raz Blanchard. The sum of these projects will allow us to validate both our technology and our economic model,” Naval Energies said in a statement.