- Alaska’s struggling economy and downturn in offshore oil and gas exploration have had a ripple effect in the marine industry.
- The cancellation of exploratory drilling in the Beaufort and Chukchi Seas means a lack of offshore vessels requiring maintenance and repair.
- The City’s widening of its Travelift will move some work that has been done by Vigor to the City’s yard.
- Due to state budget constraints, fewer Alaska Marine Highway System vessels are now in operation which means less maintenance work for our Seward team.
- Vigor’s largest client in Seward was lost when Alyeska’s contract award moved to another operator. It is unlikely this work will be recouped given the young age of the new fleet being brought in and much of the replacement vessels being too large to be serviced in the Seward yard.
Like all companies, Vigor has a responsibility to adapt to current market realities. Consolidating operations that are unable to sustain themselves is necessary for the overall health of the company and its employees.
We currently have nine employees working for us at the Seward yard. We are meeting with them today [January 25] to share this news. We deeply value the highly qualified people who work from Seward. We will make sure that affected employees know of opportunities throughout Vigor. To the extent possible, it is our goal to retain those who have contributed to our customers’ success. Affected employees will be offered severance for their service.
While an early termination of the lease is not what anyone wishes, I am hopeful we can find a mutually acceptable solution that allows the City the opportunity to put this asset to more productive use. I look forward to further conversation with you on this matter.
Executive Vice President of Ship Repair