Avondale To Use Japanese Method Of Building —Gets Trade Zone Status

Avondale Industries of Louisiana, in a bid to increase its shipbuilding business, has decided to try utilizing the Japanese method of offering a choice of standard configurations to keep costs down compared with its usual custom-design approach for commercial vessels.

The firm at the same time has obtained foreign trade zone (FTZ) designation for four of its New Orleans- area yards to enhance its export products in the eyes of potential overseas customers. Bruce Hicks, Avondale controller/treasurer, said Avondale wants to try the Japanese marketing method of having a book with several standard configurations, each with a set price, which is much less expensive that designing ships for customers from the ground up, a method that is unattractive to customers these days.

The standard-configuration approach for products carriers and tankers in the 40,000-dwt class, with particular emphasis on U.S. Jones Act vessels destined for the coastwise trade, are what Avondale is most keen to utilize, Mr. Hicks said.

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