Kvaerner sells second yard

Kvaerner has sold another of its yards, and been ordered by the EU to repay Euro41.5 million ($42.5 million) of state aid.

Marconi Electronic Systems has agreed to pay £2.25 million ($3.55 million) for the Govan shipyard in Scotland and will complete two vessels currently under construction. This lifts the threat from 250 workers who had been issued with redundancy notices by Kvaerner.

Marconi already owns yards in Barrow-in-Furness and Yarrow which undertake military work. Barrow has a large backlog and it is likely that some of its work will be transferred to Govan.

The rebate of Euro41.5 million ($42.5 million) state aid is a result of an alleged over-production at Warnow Shipyard in Rostock during 1998. It is considering an appeal.

Later this year a ruling on over-production at the yard during 1997 could cost Kvaerner another Eueo10-22m ($10.2-22.5 million).