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Havyard closes yard due to COVID-19

Havyard closes yard due to COVID-19

At least 17 individuals tested positive for COVID-19 in Norway's shipbuilder New Havyard Ship Technology AS, resulting in work suspension at the yard.

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On September 30, the Leirvik-based shipyard temporarily suspended operations after four cases of infection were confirmed.

The municipality of Hyllestad agreed to keep the yard business closed until October 10, 2020, in order to prevent the further spread of infections and to conduct the required contact tracing.

It is likely that the closure would affect the delivery schedule of the vessels being equipped at the yard.

“After the closure, the yard has worked closely with local health authorities to clarify the extent of the spreading of the virus, where approx. 200 people have been tested so far. As of today, approx. 17 people associated with the yard have been diagnosed with the infection,” Gunnar Larsen, Havyard CEO announced.

“Any delay will depend on the extent of the shutdown and what measures that can be implemented to make up for the lost production time,”  Larsen added.

Havyard 's operations began to be affected by the spread of the virus and infection control activities during the winter / spring 2020 timeframe. The yard activity had almost stopped for a while, but the operations were back to normal in August.

In general , the company announced in a business report for the first six months of 2020 that all current sales ventures have been delayed and travel activity reduced.

As of Q2 2020, the company was in violation of its agreements, with all long-term loans reclassified through short-term loans.

Havyard has been in negotiations with lenders, like many of its counterparts, to delay the repayment of loans and secure new facilities so as to improve the financial position of the company.

Maritime Business World 

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