Late day big news for HLX:
Note: Indoor manufacturing capabilities.....Wednesday May 13, 2:11 pm Eastern Time
Company Press Release
TDI-HALTER L.P. to Acquire Trinity Shipyard in Orange, Texas
Rig Building Facility Will be 22nd in Halter Marine Group, Inc.
ORANGE, Texas--(BUSINESS WIRE)--May 13, 1998--TDI-HALTER, L.P., a subsidiary of Halter Marine Group, Inc. (AMEX:HLX - news) Gulfport, Miss. has entered into a definitive agreement with Trinity Industries, Inc. (NYSE:TRN - news) Dallas, Tex. to acquire Trinity's shipyard in Orange, Tex. The purchase is expected to close on May 29, 1998. Terms were not disclosed.
The shipyard, which will be re-named TDI-HALTER-Orange, will become the eighth TDI-HALTER facility and the 22nd shipyard of Halter Marine Group, Inc.
The 77-acre facility is located on the deep water Sabine River channel on Front Street in Orange, TX. TDI-Halter intends to use its latest acquisition to build mobile offshore drilling and production units, as well as components for other rigs under construction at other TDI-HALTER and Halter Marine shipyards throughout the Gulf South.
John Dane III, chairman, president and CEO of Halter Marine Group, Inc. said, ''This acquisition significantly increases our rig building capability. This 77 acre shipyard which has over 600,000 square feet of covered fabrication area, of which 300,000 is currently being used, recently underwent an extensive capital improvement program which added a significant amount of new equipment, including advanced computer aided metal cutting machines and a complete panel line. In addition, it has 20 cranes and two overhead cranes capable of rigging and lifting prefabricated and assembled units weighing up to 450 tons and loading over the water.
''This new yard will provide a vital and essential inside fabrication capability, virtually free of down time due to inclement weather, required to properly service the other seven TDI-HALTER shipyards. This capability will eliminate excessive sub-contracting and will give TDI-HALTER a very effective total shipyard capacity for producing multiple complex turnkey offshore drilling rig and offshore production projects annually.''
He added, ''This increased capacity, combined with 14 of Halter Marine's shipyards, its Engineered Products division and its new joint venture shipyard, Halter Yantai International in Yantai, China will enable TDI HALTER to construct and deliver some of the largest and most complex projects in the offshore energy industry.''
Trinity chairman and chief executive officer W. Ray Wallace said, ''Due to expansion and increased efficiencies we have achieved in our four principal barge facilities, we will be more than capable of meeting our anticipated present and future needs without the Orange plant.''
The Orange facility, formerly owned by American Bridge, Inc. (USS subsidiary), employed up to 1,800 people who produced multiple marine and offshore products, pressure vessels, bridge girders and other heavy industry products. The heavy metal fabrication plant was acquired in December 1992, by a Trinity Industries subsidiary which fabricated large diameter pressure vessels there until May 1996. In July 1996, Trinity Marine Products, another Trinity Industries subsidiary began manufacturing barges and barge parts at the site. Under terms of the transaction, Trinity has the right to continue to use the facility to complete its projects which are expected to be complete by mid July 1998.
Don Covington, Group President of TDI-Halter noted: ''We are particularly pleased that Trinity currently employs approximately 265 workers at its Orange facility and that TDI-Halter and Trinity have agreed to work closely together to avoid any disruption to the workforce or the work flow at the yard. We expect that employment will reach about 500 by the end of the year.''
Halter Marine Group, Inc. announced its backlog was a record $817 million at March 31, 1998, representing an 11% increase during the fourth quarter of the current fiscal year, from $733 million at December 31, 1997. The $817 million year-end backlog was related to the following business segments; vessels, $529 million or 65%; rigs, $229 million or 28%, and engineered products, $60 million or 7%. At December 31, 1997, backlog was related to the following business segments: vessels, $537 million or 73%; rigs, $148 million or 20%; and, engineered products, $48 million or 7%.
Halter Marine Group, Inc. currently includes 21 shipyards in Texas, Louisiana, Mississippi and Florida. The company specializes in the design, construction, conversion and repair of a wide variety of vessels, mobile offshore rigs, and engineered products for commercial, government/military and pleasure boat markets. Halter shipyards have built more than 2,600 vessels in the past 40 years.
Trinity Industries, Inc., with headquarters in Dallas, Tex. is one of the nation's leading diversified industrial manufacturers. Trinity principally operates in three business segments: Transportation Products, Construction Products, and Industrial Products.
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Contact:
Halter Marine Group Inc., Gulfport
Rick Rees, 228/896-0029
or
Trinity Industries Inc, Dallas
Michael E. Conley, 214/589-8935 |
