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Gammon sheds 80 workers as dwindling demand takes toll
1. Gammon sheds 80 workers as dwindling demand takes toll
Jardine Matheson's construction contracting arm Gammon Construction has shed 80
staff because of dwindling business volume. The number of lay-offs yesterday represents
about 3.5 per cent of the company's 2,300 workforce. It means that even one of
the largest construction contractors in the region cannot escape unscathed from
the slump in the SAR's building industry. Industry consultants estimated 10 per
cent of construction-related firms would go bust in coming months under the weight
of billions of dollars in debts. Gammon's lay-offs will fuel Hong Kong's rising
jobless rate, which stood at 5.3 per cent last month. Gammon, a Hong Kong-based
joint venture between Jardine Matheson and Sweden's Skanska, hoped the lay-offs
would streamline its operations. "We have a reorganisation today which involves
the lay-off of 80 staff members. It will put us in a better position to meet challenges,"
said managing director Martin Hadaway yesterday. "The move is necessary as the
problem is industry-specific. The reality is Hong Kong's construction sector is
under pressure as business volume has declined." He said the reorganisation did
not necessarily mean the firm was shrinking its SAR exposure. "Our business focus
won't change even though we are realising a cost reduction," he said. With an
annual turnover of about US$1 billion, Gammon is actively involved in a number
of large-scale infrastructure projects. They include Kowloon-Canton Railway Corp's
Tsim Sha Tsui railway extension and train stations, and part of the contracting
works of MTR Corp's Tseung Kwan O extension. Gammon's other projects include the
redevelopment of 11 Chater Road (the former Swire House) in Central and the future
IT hub CyberPort. "We'll continue to focus on business we are known for and be
active in the mainland and South-east Asia," Mr Hadaway said. [Source:
SCMP, 19 October 2001] | 
