The firm, which started out in 1760 as a marine classification society and now has more than 7,000 staff globally, including a key operation in Aberdeen, is pulling away from markets that have become largely commoditised while increasing its focus on higher-value work.
The transformation is being led by David Clark (pictured above), who was recently appointed as LR’s new global energy director. Clark boasts a 30-year career in the energy sector and has led business operations for global players including Aker Solutions, Schlumberger and Wood. He told The Scotsman: “We are emerging from the downturn in the industry and are doing some reshaping to our organisation which involves us coming out of some of the lower level services that we have traditionally provided but which have become commoditised.
“We are going to wind down from some of these areas in the UK as well as some of our international businesses. We are really not at a scale that makes sense in those particular markets. We want to focus on higher value services where we can bring our insight in the oil and gas and renewable sectors,” he added.
It is likely that about 60 roles will be affected by the restructuring, though the impact on LR’s operations in Scotland has not been disclosed. The Aberdeen base primarily serves upstream oil and gas clients.
The firm stressed that it would retain its capability from reservoir to refinery, and from concept to decommissioning, while offering “a more focused portfolio of technical consultative services in both existing and new geographical markets”.
Clark added: “Our purpose remains resolute – working together for a safer world.
“In all areas of the energy mix, throughout the supply chain and across the globe, LR will continue to support its clients through the complexity of tomorrow’s market challenges, providing the technical confidence and credibility they will need for improved business performance as new energy sources are developed.”
Profits generated from the business, which operates in more than 70 countries, help fund the Lloyd’s Register Foundation, a charity that supports science and engineering-related research, education and public engagement.