Davie shipyard going Norwegian

The Davie Industries shipyard in Lévis, Quebec in Canada, has avoided liquidation and finally found a buyer. Teco Management of Norway will invest $13 million to buy the facility, while the Quebec government will guarantee half of a $15.5-million loan which is conditional on the company having a payroll of 1,100 employees by 2011. The city of Lévis is also offering a five-year tax holiday.

Back in June, the Norwegian firm said it intended to buy the shipyard, which has been in bankruptcy since 2001. However, trustees later announced the shipyard would be liquidated at the end of this month after Teco failed to meet the conditions for the purchase. On Friday, trustee Thibault Van Houtte and Associates Ltd. said the company can now offer the necessary financial guarantees for the acquisition. “We have spared no effort in finding a buyer capable of assuring the survival of the shipyard and the preservation of jobs,” said trustee Patrice Van Houtte. “Mission accomplished.”

Teco intends to build offshore drilling platforms at the shipyard.