Davie Yards Inc.
TSX : DAV
TSX : DAV.WT

Davie Yards Inc.

September 17, 2009 12:53 ET

Davie Yards Proposes Creating Shipbuilding Centres of Excellence in Collaboration With Irving Shipbuilding

National Shipbuilding Procurement Strategy

LEVIS, QUEBEC, and OSLO, NORWAY--(Marketwire - Sept. 17, 2009) - Davie Yards Inc. ("Davie" or the "Corporation") (TSX:DAV) yesterday introduced its proposal for the implementation of a National Shipbuilding Procurement Strategy aimed at renewing the federal fleet and building world-class shipbuilding capability in Canada, while providing more predictable work for the maritime industry.

"Davie's proposal is based on our belief that Canadian yards can achieve a competitive position vis-à-vis European yards in building complex ships. In order to create such competitiveness, we are proposing that major federal shipbuilding projects be allocated to a select number of yards that will develop expertise and thus make it possible to secure the right costs and prices for the fleet renewal program," explained Steinar Kulen, President and Chief Executive Officer at Davie.

Davie's proposal endorses the allocation of Major Crown Projects of the fleet renewal program to Centres of Excellence based on the technology required and the nature of the projects. Under such an allocation, one of the Centers of Excellence should focus on building combat ships and the other on building commercial type ships without heavy combat equipment and on developing Canadian expertise on heavy ice class ships. Smaller yards in Canada can be allocated contracts for the smaller and less complex ships mentioned in the program.

Davie Yards and Irving Shipbuilding agree to cooperate

The Centres of Excellence selected must be able to cooperate on the work packages for the ships they are allocated. Therefore, Davie and Halifax-based Irving Shipbuilding Inc. ("Irving") have agreed to cooperate by sharing technology, facilities, and capabilities. It has been proposed that the Government select Irving to build combat vessels and Davie to build commercial ships.

"We are convinced that this collaboration would create a win-win situation for the government and the shipbuilding industry. To us, this allocation of work would serve the best interests of Canada and the maritime industry and its many suppliers," concluded Mr. Kulen.

About Davie Yards Inc.

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 180 years of operating experience and approximately 1,400 employees, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The Corporation has a focus on building large and complex offshore service vessels and rigs, and other sophisticated vessels for commercial and governmental use. Its shares are traded on the Toronto Stock Exchange (DAV). News and information are available at www.davie.ca.

Forward-Looking Statements

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation. These statements include those relating to statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Davie's management ("Management"). Such forward-looking statements reflect Management's current beliefs and are based on information currently available to Management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside Management's control. A number of factors could cause actual results of Davie to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with the Corporation's fiscal results, conditions to the completion of the refinancing plan, working capital requirements, major disruptions of production, a downturn in economic conditions, competition and sensitivity to the oil and gas industry and other factors.

Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, Management cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained in this news release include Management's assumptions regarding market outlook for the construction of complex offshore vessels as well as the assumptions that new vessels will be delivered on schedule and that the Corporation will attract and retain key personnel in key positions. These forward-looking statements are made as of the date of this release, and Management assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risks, please refer to the Corporation's Management's Discussion and Analysis for quarter ended March 31, 2009, and the year ended December 31, 2008, as well as the Financial Statements for the quarter ended March 31, 2009, and the year ended December 31, 2008, and the Corporation's Annual Information Form dated March 29, 2009.

Contact Information

  • Davie Yards Inc.
    Marie-Christine St-Pierre
    Vice President, Communications
    418-837-5841 Ext. 2163
    Cell: 418-952-0047
    mc.stpierre@davie.ca