Havyard to restructure operations at Leirvik yard

Weak demand and challenging economics have forced Norway’s Havyard Group to restructure operations at its Havyard Ship Technology yard in Leirvik where six vessels are currently under construction. The shipyard will now focus on repairs, service and conversion projects, employees were told at a meeting. About 100 jobs will be lost.

Havyard Group CEO, Gunnar Larsen, said the decision to wind down new construction had been a difficult one because the yard is central to the lives not only of individual employees, but the region as a whole. However, he said, “the strategy of becoming a service and repair yard is absolutely necessary to keep as many jobs as possible.”

The new construction market and access to finance for newbuild projects would be challenging for some time, Larsen noted. But the yard’s position and the relative health and profitability of the service sector present opportunities. “The yard’s facilities, expertise and location mean that we are in a good position to be a reliable provider to customers in this market,” he commented.

The six vessels under construction – three offshore wind support ships and three live fish carriers – are due for completion before the end of next year. “We will deliver excellent newbuilds, in the same way as always,” declared shipyard general manager, Erlend Hatleberg, who said that future new construction has not been ruled out completely.