Henderson ferries go offshore

After 20 years of designing and building ships in Henderson, Austal is planning to continue the ferry-making side of its business offshore.

Chief executive officer Andrew Bellamy said the company could no longer compete successfully in the European ferry market as the high cost of the Australian dollar meant its ferries now cost 50 per cent more and its main customer, Greece, was in financial strife.

He said the company had shown it could compete in the defence market but it was inevitable the ferry-making side of the business would move from Henderson.

‘‘The best thing we can do for our company and workforce is to protect our intellectual property and keep our designers busy,’’ he said.

After gradually reducing its workforce by not replacing workers who left and not renewing contracts, it was forced earlier this year tomakeabout 120 people redundant, including 17 apprentices.

With building of the eight patrol boats contracted for the Australian Customs and Border Protection Service due to start in February next year, there was enough work t o keep the remaining workers employed.

But there was only a slim chance that any of the workers who lost their jobs recently would get work with the company when it finally set up its new shipyard.

‘‘What is likely is if we establish a commercial base elsewhere, there will be opportunities for some people from Henderson but I can’t guarantee anything,’’ Mr Bellamy said.

He said the company had made a $21 million profit last financial year but all of that had been made in the United States, with the Henderson yard actually making a loss of $8.7 million.

‘‘We have been managing carefully for the past 12 months and tried any other tactic first, but after the review in April we had to make some people redundant.’’

In its heyday the company had two shipyards in the area packed with ships under different stages of construction, which kept about 1200 workers and apprentices busy.

A decision has yet to be made by Austal on the location for the ferry-making side of the business.