Shipyard's future doubtful once again

The future of Wolff appears again to be in doubt after managers at the troubled Belfast shipyard said it was in a "very serious financial position".

Trade union leaders at the shipyard, which employs about 1,000 workers, met the chairman of its Norwegian parent company, Fred Olsen Energy ASA, on Monday evening to discuss the situation.

When asked yesterday whether redundancies were imminent, a shipyard spokesman said: "There's no announcement of any redundancies today . . . No decisions have been made."

Asked when a decision might be reached, he said: "There are ongoing discussions at this point in time." The company's board had discussed the situation on Monday, he added.

Some 280 staff lost their jobs at the plant earlier this summer as work on a major contract with US firm Global Marine drew to a close. The current wages bill amounts to about £2.5 million sterling (€4.1 million) a month.

Harland & Wolff has yet to finalise new contracts and it is in dispute with Global Marine over payments for the vessel it claimed to have completed on time last month, the GloMar Jack Ryan.

"The company is in a very serious financial position which is directly as a result of the refusal of Global Marine to pay the £23 million delivery instalment on the deep water drill ship recently taken out of the yard," said Harland & Wolff's spokesman.

The High Court in London said earlier this month that Global Marine - based in Houston, Texas - could take the ship away pending arbitration over final payment in the £300 million contract.

An additional payment of £133 million for what Harland & Wolff described as "additional work" on the vessel has been the subject of separate arbitration since last year.

Global Marine's Belfast spokesman confirmed that the company was in dispute on two counts with the company. These were: whether or not the price demanded by Harland & Wolff was fair; and whether the ship was ready for delivery on July 24th, ahead of the completion date in the contract, July 31st.

"The price demanded by Harland & Wolff at the end of the day far exceeds the tender. Global Marine has already paid $100 million (€111 million) extra," said the US company's spokesman.

Harland & Wolff's spokesman said arbitration was not likely to commence before September.

Fred Olsen Energy's chief financial officer Mr Ola Gjorgz said the company was seeking to finalise two large orders. It hoped to conclude contracts for four Ropax ferries worth £300 million and it had letters of intent for two cruise liners with Luxus Holdings, said Mr Gjorgz, when contacted in Oslo yesterday.

"I know they are working on various small orders," he said. But he added: "Harland & Wolff does not have any confirmed new major orders yet."

The firm will also tender for four roll-on, roll-off vessels from the UK Ministry of Defence.

Fred Olsen Energy acquired 70.8 per cent of Harland & Wolff when the company was privatised in 1989.