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May 16, 1997
(Industry, Trade and Technology)

MSL in final contract negotiations

Charles J. Furey, Minister of Industry, Trade and Technology, and Judy Foote, MHA - Grand Bank, announced today that Marystown Shipyard Limited (MSL) has entered into final negotiations for a contract to build two fire-fighting/escort docking tugs for the Newfoundland Transshipment Terminal.

Mr. Furey said: "There are many positive changes taking place at Marystown Shipyard on the Burin Peninsula. Changes to work practices agreed to by the unions, management, the Board of Directors, and government have resulted in significant productivity improvements at the yard which has increased the competitiveness of the facility."

Ms. Foote said: "The Marystown Shipyard is productively carrying out secured contracts and successfully bidding on new work which is contributing to the development of a strong reputation in the international marketplace for MSL. This in turn leads to a positive impact on the people involved and on the local economy."

Mr. Furey pointed to a $4 million extension to an $8 million contract for AMFELS, an $11.5 million fabrication contract for another U.S.-based company, HAM Marine, and $45 million worth of refurbishment work on the federal vessel C.F.A.V. Quest as examples of the positive turnaround taking place at the yard. He added that the business plan for MSL projected $2 million worth of repair work for 1997-98 but the level of repair work for the first quarter is projected to exceed that amount and could reach $4 million.

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