Cammell Laird Works To Save Costa Contract

Monday, December 11, 2000
Cammell Laird Holdings Plc is trying to hammer out a new agreement this week to save a nearly $76 million (51 million pound) cruise liner contract and protect hundreds of jobs, the Daily Telegraph reported. Cammell was also looking for a breakthrough later this week on talks about bank financing for a 350 million pound order for two cruise liners from Luxus (U.K.), a new start-up company, the paper said. It said senior executives headed by Chief Executive John Stafford were studying fresh proposals on the cruise liner contract. They were put forward by Costa Crociere, the Italian cruise line owned by U.S. Carnival Corp., after two and a half days of talks in Genoa last week, the paper said. The Italian cruise liner Costa Classica had been due to arrive for refitting at the docks in northwest England on November 26 but turned back to Genoa. Costa Crociere said it had postponed delivery of the liner because work at the shipyard was behind schedule. The 51 million pound cruise ship conversion contract is the biggest individual piece of work at the Liverpool yard. Cammell's Deputy Chief Executive Brett Martin told the Telegraph: "A number of ideas for the preparation of a new contract have been put forward by both sides. We are looking at the proposals to see whether we can get the contract back on the rails this week."

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