RMC cut its losses by half – a new strategic programme set to improve profitability in 2023

16.3.2023 Media releases

In 2022, the consolidated turnover of Rauma Marine Constructions (RMC) was EUR 143.5 million. This signifies a slight decrease from the previous year (EUR 154.2 million). The loss for the financial year was EUR -29,907,608.18 (2021: -58,404,096.49), and the equity ratio at the end of the financial year was +40.5%.

“The past few years have been difficult for RMC, and it is clear that this cannot continue. External challenges have been of course difficult for several operators. What we can do at our end is to focus on developing our operations to be as good as possible. For this, we have launched a strategic programme to achieve long-term profitability,” says Stig Gustavson, Chairman of RMC’s Board of Directors.

As a result of Russia invading Ukraine in February 2022, European steel markets faced drastic changes in terms of material availability and pricing, among other things. This unexpected situation halted block construction for RMC for a few months, and it was not until the summer that the company was able to resume utilising full capacity.

Production of multi-role corvettes will start in late-2023

Despite the challenging year, RMC’s projects have been progressing. In December, the company handed its third newbuilding vessel, MyStar, to Tallink. The advanced ship has been operating the route between Tallinn and Helsinki since December, gathering praise from the client and passengers.

In February and December, RMC began the production of two sister vessels set to operate the route between Tasmania and mainland Australia. The keel laying of the first ship was celebrated in October.

In January 2023, production work began in the shipyard’s new multipurpose hall. The building’s office space was completed in March. The hall will house the construction of four multi-role corvettes for the Finnish Navy as part of the Squadron 2020 project. The corvettes will be constructed indoors for security purposes.

The production of the multi-role corvettes will begin at the end of 2023. Steelwork for the block prototype of the vessels is already completed, and this will provide knowledge for the construction of new blocks. After the vessels have been completed, the multipurpose hall can house the construction of government vessels.

In addition to the hall, RMC has made significant investments also in steel production for the Squadron 2020 project. The investments were completed in the spring of 2022. The company is also planning to invest in a new wharf area in relation to the project.

Order book worth over EUR 1 billion

RMC has an order book worth EUR 1.2 billion extending all the way to 2028. Orders comprise six vessels in total: four multi-role corvettes for the Finnish Navy and sister vessels for TT-Line Company.

In order to carry out these orders successfully, the company must adjust its course of action and operation structure. Therefore, the company has implemented a strategic programme to achieve long-term profitability and increase capacity. The programme aims to clarify the current networked operating model and and make it more functional.

“Year 2023 is a turning point, and we have all that it takes to become profitable in our operation. The strategic programme is well underway and we have already seen development as a result of it,” Gustavson says.

The Board of Directors of RMC has appointed Mika Nieminen as the company’s new CEO and President, starting 16 March 2023. CEO Mika Heiskanen will move forward in his career and join the Royal Caribbean Group.