Due to a significant drop in earnings, ship engine producer MAN Diesel & Turbo (MD&T) has come under pressure on its bottom line, according to Børsen newspaper.
The leading maritime equipment supplier in Denmark, with over 2,000 employees in Copenhagen, is hurting because shipping lines like Maersk Line are buying smaller and cheaper engines for their new ships.
“New container ships are being developed with a relatively reduced engine capacity because they are expected to sail slower in order to save fuel,” Thomas S. Knudsen, the head of MD&T’s Danish operations, told Børsen.
“Naturally, that impacts our business. At the same time, the ships don’t need as many spare parts when sailing with reduced speed.”
READ MORE: Maersk Line struggling to fill mega container ships
Huge revenue drop
According to recently published financial results for the German-owned MD&T, revenue decreased from 2.4 billion kroner in 2012 to about one billion kroner a year later.
MD&T did not wish to disclose any specific figures from their Danish activities.
