Copenhagen - Danish conglomerate AP Moller-Maersk Monday said it planned to phase out its shipyard in Odense by 2012, resulting in the loss of some 175 jobs.

The move was over the increase of "capacity in low-cost countries in the Far East and most recently with China's determined endeavours of becoming the world's largest shipbuilding nation," the group said.

The Lindo shipyard in Odense was expected to be closed by early 2012 and the 175-strong workforce would gradually be reduced as production of 15 vessels, including five bulk carriers, is completed.

"We have to realise that it is impossible for Lindo to attract new orders. The board has therefore decided to make it absolutely clear that Lindo will not be building more vessels, once the contracted orders have been delivered," Lindo board chairman Lars-Erik Brenoe said.

Some businesses linked to the shipyard, including mooring space and cranes, production of pipes and steel components were likely to be sold, the statement said.(dpa)