Aker Helsinki shipyard loses massive cruise liner contract

Metalworkers’ Union accuses ministry of tight-fisted subsidy policy

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A letter of intent, under which the Helsinki shipyard of Aker Finnyards was to have built a massive cruise liner for Norwegian Cruise Line (NCL), has been cancelled. The contract was to have been, worth EUR 350-400 million.
      A number of reasons were given for the cancellation. Aker said that the schedule for the construction was too tight: the letter of intent called for the completion of the ship in the spring of 2007. However, the surge of orders for Aker’s other shipyards meant that the NCL cruise liner would not have been ready before 2008.
      Aker spokeswoman Sinikka Railo says that the cancellation took place in a spirit of good understanding, and that it would not block further cooperation between Aker and NCL.
     
The NCL letter of intent had heralded the first major potential cruise ship contract for the Helsinki shipyard in a long time. Currently the Helsinki shipyard is suffering from a serious shortage of orders. Only two ships are under construction at the facility. One of them is scheduled for delivery in May 2005 and the other in January and February 2006.
      The cancellation of the contract was a great disappointment for the shipyard and its workers. Head shop steward Mikko Mielonen said that the contract would have guaranteed work at the shipyard for 2006 and 2007.
      "Now there is not a clear picture of what we will do after the ships that are now being built", Mielonen said.
     
Talks were being held at the Aker Finnyards Helsinki shipyard over the fate of 700 jobs when the NCL order was announced at the end of the year. Already then Aker said that the discussions on job cuts would continue in spite of the letter of intent.
      The talks concluded with an agreement to cut 315 jobs at all of the company’s three shipyards in Finland.
      The Helsinki shipyard currently has about 150 employees on notice, and when they have left, the shipyard will still have about 750 employees, approximately 200 of whom are office workers.
     
Matti Putkonen, head of communications at the Finnish Metalworkers’ Union, believes that one reason for the cancellation of the order was that the Ministry of Trade and Industry did not provide Aker with innovation subsidies.
      A few years ago the European Union changed its shipyard subsidy system, and support for innovations is now a part of the new subsidy system.
      Special researcher Maunu Harmo at the Ministry of Trade and Industry confirms that there had been discussions with Aker Finnyards on innovation subsidies totalling slightly less than EUR 10 million. However, Finland had not yet established a system for introducing such a subsidy.


Previously in HS International Edition:
  Aker Finnyards Turku shipyard gets order for third new cruise liner (8.3.2005)
  Shipbuilder Aker Finnyards to cut 315 jobs in Finland (19.1.2005)

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