Aker and Damen finalize Okean JV

Aker Yards and Damen Shipyards Group have finalized the process of establishing joint ownership of the Damen Shipyards Okean in Ukraine, as announced on June 2 2006. The plans involve increasing the output capacity of the yard to 60,000 tonnes per year, and will contribute to a strengthened shipbuilding capacity of Aker Yards.

The Okean yard will be able to build a variety of large merchant vessels, as well as steel sections for all the three business areas of Aker Yards. The construction of the Damen portfolio including the series of cargo vessels for the Ukrainian owners will be continued.

Aker Yards will manage the yard, and will in addition to the existing projects, primarily focus the Group’s production of merchant vessels. The operations will be consolidated into Aker Yards accounts as from the date of closing.

Together with the announced acquisition of Kleven Flor?, Aker Yards will comprise 17 yards in seven countries. Following the successful privatization of the Okean yard, Aker Yards looks forward to participate in the future expansion of the Ukrainian shipbuilding industry.

Aker Yards has paid EUR 10 million in cash. Additional payments will depend on the future performance of the yard. Aker Yards will also assume or procure repayment of EUR 11 million of debt.

The joint venture will initially have an order book of 11 vessels, to a value of EUR 30 million. The yard consists of two production lines, the largest one having a dry dock 354 metres long, 60 metres wide, 14 metres deep and has approximately 3,000 employees.