Davie receives support from the Government of CanadaYard News // December 19, 2008
Struggling Davie Yards in Canada has announced that it has received support from the Government of Canada.
The Honourable Stockwell Day, Minister of International Trade, has authorized Export Development Canada (EDC) to make available up to C$380 million in financing and guarantees for the company.
“We are very pleased with today’s announcement from the Canadian government. This funding is the catalyst for us to complete our refinancing plan. We are pleased that Minister Day approved our entire building programme, which includes all five ships in our backlog,” said Steinar Kulen, Davie’s chief executive officer.
"This is good news for our 1,100 employees, who we had to temporarily lay off this week, and for our clients who will get the refund guarantees requested by their banks,” added Mr Kulen.
The governmetn's support will be conditional on EDC and Davie Yards reaching an agreement on the terms and conditions. The company will start work immediately on the paperwork that needs to be prepared to be able to re-open the shipyard as soon as possible, which is subject to completion of all aspects of the refinancing plan.
The Davie CEO added: “We are delighted with the Minister’s recognition of the importance of the shipbuilding industry in Canada, where there is growing potential in offshore oil and gas, and where the Canadian government has specific arctic and defense maritime needs. With these guarantees, Canada is establishing a competitive financing scheme for the Canadian shipbuilding industry.”
Davie is also pleased that the government is committed to procuring, repairing and refitting vessels in Canada, according to its Buy Canada policy.
“We work hard to be competitive, and with the financing tools in place, we will be there for their projects,” concluded Mr Kulen.