More good news for Kvaerner yards

Hard on the heels of Kvaerner’s announcement that it will sell its Kvaerner Govan shipyard in the UK to Marconi Electronic Systems, there has been more good news for Kvaerner yards in Germany and in the US.

The Anglo-Norwegian engineering and construction group has welcomed the agreement of the EU Commission to a German government proposal for the distribution of additional production capacity amounting to 22,000cgt among eastern German shipyards, including Kvaerner Warnow Werft.

The additional capacity has been made available from the former Elber Werft at Boizenburg. Kvaerner’s share will amount to 6,000cgt, thus increasing annual production capacity at the Warnemunde yard from 85,000cgt to 91,000cgt for 1999.

In the US, Kvaerner Philadelphia shipyard has also received good news in the form of an amendment to its agreement with the state of Pennsylvania, the City of Philadelphia, and the Delaware River Port Authority that will reduce the burden of construction costs at the yard, which the company is redeveloping.

Under the terms of the plan, Kvaerner – which is exiting shipbuilding worldwide – will be allowed to use approximately $50 million of public investment originally intended for employee training.