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March 11, 1997
(Industry, Trade and Technology)

Marystown Shipyard awarded additional work

Charles J. Furey, Minister of Industry, Trade and Technology, announced today that Marystown Shipyard Limited (MSL) has been awarded an extension on a contract with AMFELS Inc. of Brownsville, Texas. The work is valued at over $4 million and will require an additional 800 tonnes of steel and 60,000 person hours of work.

The original contract, worth $8.1 million, was signed in November 1996 and involved the fabrication of pontoon sponsons. The pontoon sponsons will be used to cover existing pontoons on oil rigs to prepare them to drill in deep waters in the Gulf of Mexico. The new work will consist of add-ons to the pontoon sponsons including anchor racks, topsides shaker houses and top-leg blisters. The additional work will commence immediately and extend existing jobs for a period of four months. There are presently 365 workers employed at the shipyard.

The AMFELS contract extension, which will conclude in mid-May, will not affect refurbishment work for the "Quest", a federal government research vessel scheduled to be refitted at MSL commencing in mid-June.

Mr. Furey said the contract provided an opportunity to test the changes that have been implemented at the yard as a result of an agreement made last year between management and the workers. He said: "This goes to show what can happen when all parties pull together. It is critical that we continue to improve our productivity if we are to be internationally competitive. I know Terra Nova developers will pay close attention to what is happening at MSL."

Mr. Furey congratulated everyone involved in the execution of this contract and said the productivity performance has paid real dividends for workers, management, the board of directors, government, and AMFELS Inc.

Contact: John Doody, Director of Communications, (709) 729-0050.