Source: Vestland County Council
A large portion of the shipbuilding industry’s order book in Stord will disappear in the coming years, and thousands of jobs are at risk. Now, the Vestland County Council is asking the government for restructuring funds, investments, and new contracts, including in the offshore wind sector.
– Aker Solutions’ order books are in danger of running dry, and this will have consequences far beyond the shipyard gates. Subcontractors and workplaces throughout Sunnhordland are feeling the impact firsthand. Now the government must step in with restructuring funds and new contracts so that the region can stand on its own two feet, says County Mayor Jon Askeland.
The motion was adopted by the county council on September 30.
A very challenging situation
In its response, the county council states that Stord and Sunnhordland are facing a very challenging situation as a result of developments in the shipbuilding and offshore industries. Major petroleum-related projects are now coming to an end, while new contracts are not coming in quickly enough to replace them. The significant downturn in the shipbuilding industry will affect subcontractors and service industries, leading to reduced value creation and job losses, the letter states.
The County Council further points out that a decline in employment will have major ripple effects throughout Western Norway. The report notes that Aker Solutions has had 2,000 permanent and 9,000 contract workers, and has purchased regional services for approximately 4 billion kroner. Now the major projects are coming to an end, with no new ones in sight. A likely round of layoffs will therefore hit subcontractors and the surrounding community very hard, writes the County Council.
Furthermore, the report states that Vestland County Council is continuing to work on initiatives both on its own and in collaboration with Stord Municipality, the Sunnhordland region, and relevant stakeholders.
Offshore Wind and Maritime Expertise as the Way Forward
In its response, the county council states that Norwegian maritime expertise and technology will play an important role in the green transition, both nationally and internationally, but that this requires actual projects and contracts that enable Norwegian industry to build on its expertise and production capacity. The county council also points out that the supplier industry has developed solutions for the aquaculture sector, and states that conditions must be created to ensure that the supplier industry can continue to contribute to growth, value creation, and sustainability in the aquaculture sector going forward.
To ensure the security of the shipbuilding industry, subcontractors, and the business community in Sunnhordland, the county council believes that the government must secure future contracts for the shipyards. The resolution states that this presents a major opportunity to both boost renewable energy production and award contracts to shipyards that are already prepared to advance offshore wind initiatives. The government must also ensure that the continued development of the Norwegian petroleum industry benefits the Norwegian supplier industry, in order to secure future contracts, the county council further states.
In the motion, the Vestland County Council asks the government to:
- State restructuring funds for Stord/Sunnhordland in the 2027 state budget
- Investment funds that support energy supply and transportation infrastructure
- Room for maneuver to facilitate rapid transition, including through innovative contracts
- That the Ministry of Trade, Industry, and Fisheries plays an active role in ensuring that the unique shipbuilding expertise in Stord can lead to new, related projects for Stord
- That the government ensure that any expansion of Norwegian offshore wind power contributes to more contracts for the shipbuilding industry and the rest of the supply chain
- That the government should ensure that future offshore activity generates as many ripple effects as possible for the Norwegian supplier industry, Norwegian shipyards, and jobs along the coast
Here is the full decision in the case
1. The County Council notes that Stord/Sunnhordland is facing a very challenging situation as a result of a decline in orders for the shipbuilding industry and its subcontractors.
2. The county government continues to provide both financial and technical support for development and restructuring efforts in the region.
3. The county government shall be strongly committed to engaging with state authorities regarding state restructuring funds and favorable framework conditions for relevant industries that are undergoing development and restructuring.
4. The County Council submits the following statement to state authorities:
Statement from Vestland County Council to the Government, c/o the Ministry of Trade, Industry, and Fisheries and the Ministry of Energy.
Stord and Sunnhordland are facing a very challenging situation as a result of developments in the shipbuilding and offshore industries. Major petroleum-related projects are now coming to an end, while new contracts are not coming in fast enough to replace them. This major downturn in the shipbuilding industry will affect subcontractors and service industries, leading to reduced value creation and job losses.
A decline in employment will have major ripple effects throughout Western Norway. Aker Solutions has had 2,000 permanent employees and 9,000 contract workers, and has purchased regional services for approximately 4 billion kroner. Now the major projects are coming to an end with no new ones in sight. A likely round of layoffs will therefore hit subcontractors and the surrounding community very hard.
Vestland County Council continues to work on initiatives both on its own and in collaboration with Stord Municipality, the Sunnhordland region, and relevant stakeholders.
Norwegian maritime expertise and technology will play a key role in the green transition, both nationally and internationally, but this requires actual projects and contracts that enable Norwegian industry to build expertise and production capacity. The supplier industry has also developed solutions for the aquaculture sector. We must create the conditions for our supplier industry to continue contributing to growth, value creation, and sustainability in the aquaculture sector for the future.
To safeguard the future of the shipbuilding industry, subcontractors, and the business community in Sunnhordland, the government must secure future contracts for the shipyards. This presents a major opportunity to both boost renewable energy production and award contracts to shipyards that are already prepared to take the offshore wind initiative to the next level. The government must also ensure that the continued development of the Norwegian petroleum industry benefits the Norwegian supplier industry, in order to secure future contracts.
The Vestland County Council considers strong government involvement to be absolutely essential for measures that will secure employment, facilitate transition, and lay the foundation for sustainable economic growth in the years ahead.
The Vestland County Council is asking the federal government to:
- State restructuring funds for Stord/Sunnhordland in the 2027 state budget
- Investment funds that support energy supply and transportation infrastructure
- Room for maneuver to facilitate rapid transition, including through innovative contracts
- That the NFD plays an active role in working to ensure that the unique shipbuilding expertise in Stord can lead to new related projects for Stord.
- The government should ensure that any expansion of Norwegian offshore wind power will lead to more contracts for the shipbuilding industry and other supplier industries.
- That the government should ensure that future offshore activities generate the greatest possible spillover effects for the Norwegian supply industry, Norwegian shipyards, and jobs along the coast.
The decision by the county council on September 30 was made in connection with case PS 135/2026, “Development and Restructuring Efforts in Stord/Sunnhordland”
