Sun Ship To Focus On Ship Repair Work

Sun Company said that after a year-long analysis of the market for new ships and the competitive position of its Sun Ship subsidiary, the yard will withdraw from new ship construction activities and redirect its Chester, Pa., operations to a ship repair and industrial products facility.

Sun Ship president Robert Campbell said the transition would last approximately 18 months as the yard's current new ship construction backlog is completed, and would eventually reduce Sun Ship's employment from its current 4,200 to approximately 1,100 persons.

There has been a general decline in new ship construction in the past 10 years, according to Mr. Campbell, and market projections indicate that this decline will continue. In addition to a poor market showing no signs of future growth, he stated that Sun Ship is no longer competitive in the industry, as in recent years the yard has required considerably more man-hours to build comparable ships than Sun's competitors.

Mr. Campbell said that while his company had posted large financial losses in recent years, the ship repair and industrial products parts of the business have been encouraging.

"Our studies have shown," Mr.

Campbell said, "that while we clearly cannot be a profitable participant in the new ship business, the future markets for ship repair and industrial products such as heavy steel fabrication and machining can be stable and profitable, and we intend to work toward that goal. Our presence in Chester will be reduced from what we are today, but we will continue to strive to maintain what we hope will be a healthier presence in the future."

Maritime Reporter Magazine, page 10, Feb 15, 1981

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.