Malta Drydocks has won an "important" contract for a major refit on the US Navy's sixth fleet flagship USS La Salle, the government and the Malta Drydocks said yesterday.
The contract was welcomed by US Ambassador Anthony Gioia: "It is with great pleasure that the US Embassy congratulates the Malta Drydocks for their success in once again being chosen by the US Navy to make repairs on the USS La Salle.
"This success can only be attributed to both the management's and workers' diligence and hard work in upholding one of Malta's finest traditions.
"This decision affirms the US Navy's continuing confidence in the Malta Drydocks' professionalism and will, no doubt, be mutually beneficial to all parties involved."
This is the second time that the US Navy has awarded the La Salle contract to Malta Drydocks. In 2001, the drydocks completed a Lm3 million refit on the vessel. The General Workers' Union drydocks workers' section had argued that such work was in breach of the constitution.
Drydocks chairman John Cassar White said this was an important contract which would help the Malta Drydocks reach its targets in terms of turnover.
"This is the type of contract which helps the 'yard to increase its turnover," he said.
Mr Cassar White said the contract reaffirmed the faith of the US Navy in Malta and its shipyards.
He declined to say how much the contract was worth, saying that this information was of a commercial nature but he did say that it was worth more than the previous refit.
He said the refit was expected to take two-and-a-half months and the La Salle was expected in dock at the end of June or the beginning of July.
Malta Drydocks said the 'yard had beaten off stiff competition from 13 other major shipyards invited to bid for the substantial contract.
Drydocks chief executive Peter Moore said that winning this prestigious contract once again was an important indicator that the Malta Shipyards were taken seriously by competitors and customers.
"Competition for this contact was fierce and our commercial and marketing team have done an excellent job in the bid preparation," Mr Moore said.
Information Technology and Investment Minister Austin Gatt also expressed satisfaction: "This success was another result of the government's strategy aimed at putting the drydocks back on its feet."
He added that the restructuring programme was making the 'yard more competitive.
A major controversy had arisen when the La Salle came to Malta in 2001.
The issue had escalated to the extent that the prime minister had threatened to stop government subsidies to the dockyard if the work was not taken in hand.
That contract was the first awarded to the 'yard by the US Navy through an agreement signed in December, 1999, enabling Malta Drydocks to bid for repair and alteration of auxiliary vessels of the Sixth Fleet.