Shipbuilding Merger May Cut Jobs

Wednesday, May 10, 2006
Britain’s three big shipbuilding and defense groups have held exploratory talks about creating a new company or alliance in a move that would put thousands of Scottish shipbuilding jobs under threat. BAE Systems and VT Group have tabled various alternatives for Britain's naval shipbuilding industry should they decide not to proceed with a bid for Babcock International, the warship builder and support services group. Under Takeover Panel rules, the two companies have until May 18 to decide whether to make an offer for Babcock. Alternative proposals could see the three shipbuilders take stakes in a new business or collaborate through a three-way alliance. The government endorsed the need for consolidation in the UK maritime sector in a defense white paper published in December. An alliance or combination would have far-reaching implications for Scotland's shipbuilding sector. The shipbuilding interests of BAE Systems and Babcock International are focused on Glasgow and Rosyth while VT Group is based in Portsmouth. BAE Systems Naval Ships employs 3,000 people at Scotstoun and Govan, while Babcock has 12,000 employees at Rosyth. Despite a current glut of orders, UK shipbuilding is forecast to have a severe oversupply problem in ten years' time. Steep job cuts are seen as inevitable. (Source: The Scotsman)
Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

ThyssenKrupp Says Submarines Part of Growth Story

Germany's Thyssenkrupp sees its submarine business as making an important contribution to its growth targets, the head of its Industrial Solutions business area said on Tuesday.

Gas Turbine Alternator Installed into Aircraft Carrier

The Aircraft Carrier Alliance has completed the installation of the first MT30 Gas Turbine Alternator (GTA) package into the Royal Navy’s latest aircraft carrier HMS Prince of Wales,

Ports

First Ship to Load Soy at Tegram Bound for China

The first ship to load soybeans from the new Tegram terminal in the northeastern port of Ponta Madeira in Sao Luis, Brazil, will berth on March 10, local shipping agents Cargonave said on Tuesday.

Brazil Truck Strike Diminishes

Some truck drivers in Brazil continued blocking roads on Tuesday, slowing grains deliveries to southern ports, even as adherence to the strike diminished and a

Hike in Service Tax at Indian Ports

The Indian Ministry of Finance has advised an increase in service tax and applicable at all ports. The effective date has not yet been announced. The rate

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1213 sec (8 req/sec)