(Alliance News) - Harland & Wolff Group Holdings PLC on Friday said that it remains focused on progressing its pipeline of opportunities across different sites, after concluding its contract with Saipem Spa and rationalising its Methil facility in Northern Ireland.
Harland & Wolff is a London-based company focused on strategic infrastructure projects and physical asset lifecycle management.
The firm said that, further to its previous announcement, it has concluded negotiations with Saipem, finalising the contract value at GBP16 million. This represents 70% of the contract value; the entire amount has now been paid in full.
In December, Harland & Wolff said that it had mutually decided with Saipem to cancel the contract for the fabrication of four wind turbine generator jackets for the offshore Neart na Gaoithe project. It blamed numerous issues with payments, delays and defective materials, with resultant unbearable cost escalations.
Some of the fabrication work for the Cory Barges contract will now be moved across to Methil. Harland & Wolff expects Methil to begin fabrication on four barges in tandem within the next two weeks, in line with the its strategy of operating across multiple facilities, and balancing work as well as skill sets between the yards.
Having completed the contract settlement with Saipem, the company also plans to undertake a process of rationalising the Methil facility's workforce to 115 core personnel in order to align its resources and cost base.
"The Saipem project was the first project to arrive in Methil after our acquisition of the facility. With the previously announced delays and the changed economic position of this project, it was in the company's best interests to draw the project to a mutually acceptable close. The project has been a helpful learning curve for the business in this environment and we will take the lessons learnt forward into our next major project," said Chief Executive Officer John Wood.
"In the meantime, the teams are focusing on constructing barges whilst contract discussions and negotiations advance for another large project. In the interim, the company is focused on progressing the company's pipeline of opportunities across its different sites and markets and remains steadfast in its approach to executing on contracts which maintain strong and attractive margins."
Harland & Wolff shares were trading 1.9% higher at 15.10 pence each in London on Friday morning.
By Holly Beveridge; Alliance News reporter
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Harland & Wolff (HARL)