Newport News Exit from Commercial New Building a Serious Jolt to US Maritime Industry: Last Two Eletson Vessels Flipped to Hvide Van Ommeren

In a move long anticipated by Marine Money, Newport News has formally announced that it will exit from commercial shipbuilding. Further, the company has canceled the last three Double Eagle Tankers for Hvide Van Ommeren, for whom two others are well into steel cutting. The remaining two Eletson vessels under construction will be delivered to Hvide Van Ommeren as well. Newport News will remain in the commercial vessel repair business.

Newport News has lost a reported $310 million in pursuing commercial newbuilding. This includes a pre-tax charge of $150 million against 1997 results to cover the costs associated with contract cancellations, close out costs, and continued higher than expected costs associated with Double Eagle production.

The announcement ends an epic corporate effort to revitalize US commercial shipbuilding. While there will be plenty of blame to pass around, the commercial sales team, led by Ed Waryas, delivered orders in the face of significant worldwide skepticism.

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