Spain bets on rise in tanker demand

Spain`s state-owned shipbuilder is staking its future on rising world demand for modern gas and oil tankers and its ability to find benefits in marrying naval and civil shipbuilding technologies. Izar – pronounced “ithar” and meaning “to hoist” in Spanish – was created late last year with the acquisition by Bazan, the naval builder, of Astilleros Espanoles, its counterpart on the civil side. Losses by Astilleros (Casanova describes it as having been “drained of financial resources” before the takeover) more than offset Bazan`s profit, leaving the group e100m ($100m) in the red last year. But chairman and chief executive Jose Casanova predicts that Izar`s portfolio of nine newbuilding or repair yards will break even in 2003.