Cecon faces new delay to Davie newbuilds

CeconJUNE 4, 2012 — Subsea installation contractor Cecon ASA looks to have hit yet another bump in the road to delivery of the three vessels it has on order at Lévis, Quebec, shipbuilder Davie.

Cecon reports that SNC-Lavalin says "it has made the difficult decision to cease its efforts to participate in the Davie Joint Venture. Following an extensive analysis, we concluded that this initiative did not pass the financial or business risk criteria required to proceed. SNC-Lavalin will collaborate with all stakeholders to facilitate the transition.”

SNC-Lavalin was one of the Davie J.V. partners that was planned to take part in the completion of the Cecon vessels under construction at the Davie shipyard.

Cecon says it "regrets the withdrawal, however alternative solutions are under negotiations and development for delivery of the vessels. During the process up until the withdrawal the yard was made ready for a start-up in mid-June.

"Based on successful negotiations and development, we expect possible delays to be minor."

Want more? Subscribe now!

News from NASDAQ