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LONDON - Hunting PLC (LSE:LON:HTG) announced Thursday it will relocate its Oil Country Tubular Goods manufacturing operations from Fordoun to its Badentoy site in Portlethen, Scotland, as part of an expanded restructuring plan for its Europe, Middle East, and Africa (EMEA) segment.
The precision engineering group is intensifying cost-cutting measures first announced in January 2025, citing continued challenges in the UK North Sea market and unfavorable medium-term drilling outlook. The company said yard services at the Fordoun facility, including storage and inspection, will be discontinued after existing customer contracts are fulfilled.
The additional restructuring is expected to generate annual cost savings of approximately $2 million, with about half of that amount projected to translate into improved profitability, according to the press release statement. The production transfer and service wind-down should be completed within 12 months.
With this expanded initiative, Hunting now anticipates total annualized savings from its EMEA restructuring to reach approximately $11 million by June 2026. The original restructuring plan, announced earlier this year, aimed to restore profitability to the segment by consolidating facilities and redirecting investments toward growth regions in the Middle East and Africa.
The company indicated that implementation of the initial plan during the first half of 2025 revealed the need for deeper cost reductions and further rationalization of its European operations to ensure long-term profitability.
Hunting plans to provide additional details about the restructuring in its 2025 half-year results, scheduled for release on August 28.
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