NLIS 9
May 25, 2001
(Industry, Trade and Rural Development)

Government meets with Friede Goldman Halter in Mississippi over Marystown Shipyard

Industry, Trade and Rural Development Minister Beaton Tulk , Judy Foote, MHA - Grand Bank, and members of the executive of Local 20 of the Marine and General Workers of Canada met on May 23 and 24 with Friede Goldman Halter (FGH) in Gulfport, Mississippi.

The purpose of the meeting was to review the current status of bankruptcy protection for FGH, its plans over the short term and long term for the Marystown facility, and to ensure that the assets at Marystown are not at risk of sale or liquidation. 

"The company reiterated to us its confidence that it will successfully come out of its current difficulties and be a stronger company as a result of it. The company did advise us that it is attempting to sell off some of its non-core subsidiaries and recently concluded the sale of its operation in France for $33 million. However, FGH reassured us, as it has previously, that it views the Marystown operation as a core business asset and has no intention of liquidating or selling the assets at Marystown as part of its restructuring plan," said Minister Tulk.

Minister Tulk also reaffirmed that government is continuing to pursue all legal options to secure the assets of the yard with a view to ensuring they remain in Marystown under a worst-case scenario (i.e. bankruptcy). "We will leave no stone unturned in this regard," he said.

Minister Foote said: "We had a productive discussion with FGH on ways in which new work can possibly be attracted to the yard. FGH is committed to get back to us as quickly as possible on some options that we pursued in Gulfport."

Minister Tulk concluded by saying "we will continue to work closely with the company and other stakeholders, including the union, to deal with the current circumstances. This is a priority for me as Minister of Industry, Trade and Rural Development and I want to assure the public, but especially the people of the Burin Peninsula, that every reasonable measure will be pursued to ensure the long term future of the yard."

Media contact: Clifford Grinling, (709) 729-7066.

2001 05 25                                             4:00 p.m.