Maritime Reporter, June 1993

<BODY> <div> YARD PROFILE Avondale's 20,000-ton drydock. Photo Credit: Ricky Kellum AVONDALE: Turning To Quality, Productivity To Stay Competitive Avondale delivered 16 vessels in a 19-month span, according to Ron McAlear, vice president of advanced programs and marketing, but this New Orleans-based builder is far from resting on its laurels. All told, 1992 shaped-up as an impressive year for the employee-owned com- pany, and that momentum has con- tinued into 1993. The company's latest financial results indicate a $348,000 first-J uarter profit, versus a more than 8 million loss for the same period just a year before. The Shipyards Division currently has approxi- mately $580 million on its orderbook, a total which includes eight newbuilds for the U.S. Navy (four T- AO's, three LSD's and one T-AGS 45) and one MHC for outfitting. While recent Department of Defense budget cuts strike an ominous tone for many U.S. yards, Avondale is aggressively exploring means to soften the blow. "Defense cuts overall will hurt the industry," said Mr. McAlear. "It is going to hurt, but perhaps it will hurt us less because we are so commercially oriented." Currently the company has bids for: two tankers and two options with Texaco; up to 12 Sealift new construction ships; two sealift con- versions; one polar icebreaker; and one LSD. "We are in decent shape, because we have proven our ability in the past to diversify," said Mr. McAlear. 1992: A Good Year Avondale Industries, in 1992, was recognized as one of the safest ship- yards in the nation, as it was awarded, for the second consecutive term, the Occupational Safety and Health Administration (OSHA) Star Award. Avondale is also involved in OSHA's Voluntary Protection Pro- gram, and since the conception of the program, the lost workday rate has dropped to 72 percent and the incident rate has dropped to 61 per- cent. During a four-week period in May and June, the company successfully launched two ships, had one deliv- ery and one commissioning, all for the U.S. Navy. That time period saw the commissioning of the USS Ashland (LSD 48), the launching of the USNS Tippecanoe (T-AO 199) and the USNS Waters (T-AGS 45), and the delivery of the USNS Big Horn (T-AO 198). In all, the year also saw the Ship- yards Division accomplish two keel layings, three launchings, five builder's trials, three acceptance tri- als, and deliveries of five ships and a floating prison. A Long History; A Promising Future Avondale's Shipyards Division began in 1938 as Avondale Marine Ways, Inc., a small, independent barge construction and repair facil- ity. Growing in response to demands created by the record expansion of south Louisiana's oil industry, and by the continued development of the Port of New Orleans, Avondale Ma- rine Ways gathered together a corps of skilled employees, which eventu- ally grew to become the Avondale Shipyards, Inc. Today Avondale Industries Inc. is 5,700-employees strong, and the Shipyard Division facility totals 268 acres, containing three outfitting docks and supporting shops. There is an upper shipbuilding area which is capable of constructing ships up to 250,000-dwt or three conventional- sized ships concurrently, and a lower shipbuilding area which is capable of building five 792-foot LASH ships concurrently. Ships built in the up- per area move laterally in three po- sitions for launching by Avondale's large floating drydock. This dock is also used for repairs and has fre- 116 Maritime Reporter/Engineering News </div> <span id="lblContents"></span> <br /> <br /> <a href="http://www.digitalwavepublishing.com/" title="Digital Magazine">Digital Wave Publishing</a> </BODY>