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Philly Shipyard and Vard Marine Team Win Contract for CHAMP Design Study

The Associated Press

PHILADELPHIA--(BUSINESS WIRE)--Jun 12, 2019--

Philly Shipyard and Vard Marine are pleased to announce that their bid to conduct industry studies for the Common Hull Auxiliary Multi-Mission Platform (CHAMP) program has been selected by the U.S. Navy.

The CHAMP program is a multi-phase effort that involves design studies, preliminary design, and detail design and construction (DD&C) to ultimately replace the Military Sealift Command (MSC) fleet of aging ships, which provide transport of supplies and critical support to U.S. forces abroad. CHAMP could affordably recapitalize the current fleet with significant decreases in cost both in ship construction and life-cycle maintenance cost. The demand for the CHAMP program could approach 60+ vessels.

Steinar Nerbovik, Philly Shipyard President and CEO, remarked, “We are excited and grateful to team with Vard Marine and explore the design for this important program. Philly Shipyard has the history, facility and access to skilled labor, as well as a strong reputation for quality, which is required to develop a highly effective, mature and affordable solution to support a successful long-term recapitalization.”

“It is an honor to be teamed with a state-of-the-art and capable world-class shipyard such as Philly. Our combined expertise is a great recipe for achieving a best-value solution for the CHAMP program,” said Darren Truelock, VP Houston for Vard Marine.

Philly Shipyard is one of four U.S. shipyards selected for the design study. The design study efforts begin immediately and last into 2022. It is anticipated the shipyards will ultimately compete for the DD&C contract, with award in 2023 and acquisition occurring over the next ten years. There is growing support, however, to accelerate the program to begin acquisition of the first vessels as early as 2021.

About Philly Shipyard:

Philly Shipyard, Inc. (PSI) is a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as the preferred provider of oceangoing merchant vessels with a track record of delivering quality ships. PSI is the sole operating subsidiary of Philly Shipyard ASA. Philly Shipyard ASA is listed on the Oslo Stock Exchange (Oslo: PHLY) and is majority-owned by Aker Capital AS, which in turn is wholly-owned by Aker ASA. Aker is a Norwegian industrial investment company that creates value through active ownership. Aker's investment portfolio is concentrated on key Norwegian industries that are international in scope: oil and gas, fisheries and biotechnology, and marine assets. Aker's industrial holdings comprise ownership interests in Aker Solutions, Kvaerner, Aker BP, Aker BioMarine, Ocean Yield and Akastor. For more information about Philly Shipyard, please visit www.phillyshipyard.com.

About Vard Marine:

Vard Marine is a consulting naval architecture and marine engineering company with Canadian operations located in Vancouver and Ottawa, and American operations located in Houston, Texas. The company offers professional ship design, engineering, and shipbuilding technology services. More information on Vard Marine can be found at https://vardmarine.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190612005709/en/

CONTACT: Kelly Whitaker / +1 215 875 2640

kelly.whitaker@phillyshipyard.com

KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA

INDUSTRY KEYWORD: TRANSPORT MARITIME MANUFACTURING OTHER MANUFACTURING

SOURCE: Philly Shipyard

Copyright Business Wire 2019.

PUB: 06/12/2019 11:55 AM/DISC: 06/12/2019 11:55 AM

http://www.businesswire.com/news/home/20190612005709/en