Malta Shipbuilding News

The Maltese government is all set to set to transform the ex-Malta Shipbuilding site into a service hub for the oil and gas industry, directly employing 160 people while paving the way for Malta to benefit from growing business in the Mediterranean region. The had sought bids for the concession of the 175,000 square metre site for its development as a maritime hub. Twenty-eight expressions of interest were submitted, followed by six bids, and last January, Ablecare Oilfield Services Group – a Maltese company established in 2001 – was announced the preferred bidder for the site. The entire Malta Shipbuilding site is to be allocated to the Ablecare Group in what should be a 45-year lease.

Malta's government reportedly launched a wide-ranging reform of its loss-making shipyards to make the industry financially viable. This reform apparently means the winding up of state-owned Malta Drydocks Corporation and Malta Shipbuilding and the transfer of their assets and liabilities to the government. A new company, called Malta Shipyards, is to be set up to absorb some of the workers under new working conditions. Dockyard facilities would be rented to the new company by the government.

Thousands of striking workers demonstrated in Malta's capital on Friday, Reuters reported, against tax increases and major shipyards were hit by the industrial action. Malta Drydocks, Malta Shipbuilding and Malta Freeport were among companies hit by stoppages after the General Workers' Union called on all workers to go on strike. Union general secretary Tony Zarb told the opposition's Super One radio that the union was very satisfied with the turnout. During the demonstration, attended by thousands in Valletta's main street, Zarb presented a petition signed by 78,600 people to Prime Minister Eddie Fenech Adami calling on the government to ease financial burdens on workers.

Malta Drydocks (MDD) and Malta Shipbuilding (MSCL) have joined forces with the Swiss-based Safety Company, Du Pont Safety Resources, to implement a major safety improvement program involving all levels of employees throughout each business. The extensive and in depth program will last three years and has the objective of substantially reducing the number of unsafe acts that ultimately lead to accidents. Continuous work is ongoing to improve safety performance at both MDD and MSCL. Improvements in recent years have taken place with MDD being awarded the British Safety Council 4 Star rating in 2001. This new initiative will enable more progress to be made and takes the safety agenda to the forefront in both companies.

Malta’s government must feel (rightfully so) that an $87 million bailout give it management entitlement of beleaguered Malta Drydocks. The government is reorganizing the management of Malta Drydocks in an attempt to revitalize a scant (estimated) one percent of ship repair work in the Mediterranean. Apart from restructuring management, the new business plan would introduce new work practices to increase productivity and beef up marketing, he said. The plan calls for the yard to work closely with Malta Shipbuilding, and share the same chairman.

Malta appointed the head of Malta Shipbuilding as chairman of Malta Drydocks, pointing to closer cooperation between the two loss-making firms. The Department of Information said former banker John Cassar White, chairman of Malta Shipbuilding for almost two years, would also head Malta Drydocks from February. He will take over from Noel Zarb Adami.

Malta last Wednesday appointed the head of Malta Shipbuilding as chairman of Malta Drydocks, pointing to closer cooperation between the two loss-making firms. The Department of Information said former banker John Cassar White, chairman of Malta Shipbuilding for almost two years, would also head Malta Drydocks from February. He will take over from Noel Zarb Adami. The new Malta Drydocks board will include former central bank governor Emanuel Ellul, former Labor minister Joe Micallef Stafrace and Anglu Fenech, former general secretary of the General Workers Union. Workers will elect one director to the board, instead of four previously.