Dutch contractor Heerema Marine Contractors (HMC) has decided to close down its offshore pipe-laying business in the wake of stiff competition.

The move comes after a review and commercial evaluation of the company’s position in the pipe lay market, which is experiencing ‘significant overcapacity’.

The decision will result in job cuts affecting around 350 permanent employees.

HMC’s realignment started in the fourth quarter of last year with a restructuring, and the latest move is reflective of ‘unfavourable’ market conditions and ‘low’ investments in the oil and gas industry.

Once the pipe-laying business is shut down, the company will shift its focus to its core business of heavy lift, decommissioning and renewables.

Heerema Marine Contractors chairman Pieter Heerema said: “Dictated by the difficult market conditions, we have to change into a different kind of organisation.

“I deeply regret the consequent loss of trusted and professional colleagues who have helped building our strong reputation in the offshore (pipe lay) market.

“At the same time we have to continue our process of transforming into a marine contractor which is leaner, more efficient and capable of benefiting from the opportunities the offshore market still represents.”

The company, which is undergoing a strategic transition, noted that despite the termination of the pipe lay activities, the ongoing projects will not be affected.

Hereafter, HMC will be engaged in activities such as transport and installation of offshore structures, decommissioning of platforms and the execution of projects in the renewables sector.