Kvaerner Fjellstrand News

Gordon Wilson, minister responsible for BC Ferries, congratulated Vancouver Shipyards for joining with fast ferry designer Kvaerner Fjellstrand of Norway in an agreement under which the B.C. shipyard will market aluminum fast ferry designs internationally. "Vancouver Shipyards is the lead contractor on BC Ferries' fast ferry project, and I'm delighted to see that the company's confidence in the international market for high-speed aluminum ferries has grown to the point that it is prepared to take the next step toward a sustainable B.C. fast ferry industry," said Wilson. "I've said all along that the private sector has to get involved in a more direct way in this industry.

Kvaerner officials announced the company will sell its Kvaerner Fjellstrand shipyard in Singapore to Dutch firm Damen Shipyards Group. The sale will mean a slight accounting loss for Kvaerner, but it will be within the scope of the provisions made in 1999, officials said. No price was given for the sale. Kvaerner charged $459.7 million in provisions for 1999 linked to the restructuring and an extra 750 million in January 2000. Kvaerner decided last year to sell all its 13 shipyards and sold the sister yard, Kvaerner Fjellstrand in Norway, in February 2000. It still has to sell major yards in Philadelphia and Warnow, Germany.

Damen Shipyards Group has formulated an agreement with Kvaerner ASA to acquire the Singapore shipyard, Kvaerner Fjellstrand. An agreement has been signed for the acquisition by Damen of all shares in KFJS. Following the acquisition, the Singapore operation will be known as Damen Shipyards Singapore - employing the current staff of Kvaerner Fjellstrand Singapore.

In terms of new deliveries, the West Coast ferry industry will probably not see another period to match the past 18 months for some time. All three of the large government-operated ferry systems in the Pacific Northwest - Washington State, BC Ferries and the Alaska Marine Highway System - received new tonnage, as did a number of smaller operators along the coast. Still under construction are two high-speed vehicle-carrying catamarans for BC Ferries and a single passenger-only high-speed cat for Washington State. In addition, the Nichols Bros. yard at Freeland, Wash. is completing a 40-knot catamaran for operation between southern California and Catalina Island, and a second 35-knot cat for deployment in Alaska by the Brad Phillips organization.

Kvaerner Plc has agreed to sell its maritime and technology unit Kvaerner Maritime for $15.9 million in cash. Separately, the group will also sell its Fjellstrand shipyards in Norway for $12.2 million to a consortium consisting of the management of Kvaerner Fjellstrand and other local investors. Kvaerner said it would sell Oslo-based Kvaerner Maritime to a consortium consisting of the management and staff of the company, and Reiten & Co. ASA. Reiten is a privately held financial house, based in Oslo, which invests in small technology businesses. The group said the sale of Kvaerner Maritime would not affect its accounts, though the sale of Kvaerner Fjellstrand would result in a small accounting loss.