Philly Shipyard & Avalotis Industrial Services Finalize Transfer of Prime Plate Facility Operations

Rhea-AI Summary

Philly Shipyard and Avalotis Industrial Services have finalized an agreement for the transfer of operations of PSI's Prime Plate Facility effective February 1, 2023. AIS will now fully operate this steel blasting and priming facility, catering to PSI's plate priming needs for shipbuilding and fabrication. This strategic move allows Philly Shipyard to focus on shipbuilding operations while achieving cost savings. Avalotis plans to not only service PSI but also offer its plate priming services to third-party clients. Both companies highlight the partnership as mutually beneficial for expanding their services.

AI-generated analysis. Not financial advice.

Positive

• Philly Shipyard can now concentrate on its core shipbuilding business.
• The agreement allows for operational and overhead cost savings for Philly Shipyard.
• Avalotis intends to market its plate priming services to third parties, expanding its business.

Negative

• None.

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PHILADELPHIA, PA and VERONA, PA / ACCESSWIRE / February 1, 2023 / Philly Shipyard, Inc. (PSI) and Avalotis Industrial Services (AIS), an affiliate of Avalotis Corporation, have reached a definitive agreement for the transfer of operations of PSI's Prime Plate Facility - a steel blasting and priming facility located outside the shipyard fence-line in the Navy Yard business park. Effective February 1, 2023, AIS will assume full operational control of this facility while servicing all of PSI's plate priming requirements for its shipbuilding, repair, and miscellaneous fabrication activities.

PSI's Prime Plate Facility receives plates from the steel mill, and then shot blasts and primes them with a weldable zinc primer, also known as a pre-construction primer. The cycle takes place in an indoor controlled environment for proper surface preparation.

On September 6, 2022, PSI and AIS announced the signing of a term sheet for the transfer which was contingent on both parties reaching a final agreement and obtaining the necessary consents and approvals.

"We have worked with Avalotis Corporation on numerous projects in the past and we look forward to a strong continued partnership through this new agreement," said Steinar Nerbovik, President and CEO of Philly Shipyard. "Transferring our prime plate operations will allow Philly Shipyard to completely focus on our core business of shipbuilding while receiving operational and overhead cost savings. We see this as a win for both parties."

"Avalotis Industrial Services (AIS) is proud to be partnering together with Philly Shipyard. This agreement allows AIS to expand our fully automated surface preparation and industrial coating services throughout the East Coast. Individually we are a drop, but together we are an ocean," said Joe Professori, President of Avalotis Industrial Services.

In addition to servicing PSI's plate priming requirements, Avalotis intends to market its plate priming services to third party industrial and government clients.

About Avalotis Corporation

Avalotis Corporation is certified by the Society for Protective Coatings (SSPC) for the QP1, QP2 and QP3 nationally recognized certification programs and offers specialized industrial services including surface preparation and abatement, painting protective coatings, specialty coatings and linings, flooring systems, scaffolding and containment, and related services.

For more information about Avalotis, please visit www.avalotis.com.

About Philly Shipyard

Philly Shipyard, Inc. (PSI) is a leading U.S. shipbuilder that is presently pursuing a mix of commercial and government work. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as a preferred provider of oceangoing merchant vessels with a track record of delivering quality ships, having delivered around 50% of all large ocean-going Jones Act commercial ships since 2000. PSI is the sole operating subsidiary of Philly Shipyard ASA. Philly Shipyard ASA is listed on the Oslo Stock Exchange (OAX: PHLY) and is majority-owned by Aker Capital AS, which in turn is wholly-owned by Aker ASA (Aker). Aker is an industrial investment company that exercises active ownership to create value. Aker has ownership interests in oil and gas, renewable energy and green technologies, maritime assets, marine biotechnology and industrial software, and its portfolio includes companies like Aker BP, Aker Horizons, Aker BioMarine, Cognite, and Aker Solutions.

For more information about Philly Shipyard, please visit www.phillyshipyard.com.

Media Contacts:

Avalotis Industrial Services
Joe Professori
724-771-8333

Philly Shipyard, Inc.
Matt Cassidy
484-340-2871

SOURCE: Philly Shipyard ASA

View source version on accesswire.com:
https://www.accesswire.com/737782/Philly-Shipyard-Avalotis-Industrial-Services-Finalize-Transfer-of-Prime-Plate-Facility-Operations

FAQ

What is the agreement between Philly Shipyard and Avalotis Industrial Services?

Philly Shipyard transferred operations of its Prime Plate Facility to Avalotis Industrial Services effective February 1, 2023.

How does the agreement benefit Philly Shipyard?

The agreement allows Philly Shipyard to focus on shipbuilding and achieve operational cost savings.

What services will Avalotis provide after the agreement?

Avalotis will service PSI's plate priming needs and also market its services to third-party clients.

When did the agreement between Philly Shipyard and Avalotis take effect?

The agreement took effect on February 1, 2023.

How will this agreement affect the operations of the Prime Plate Facility?

Avalotis will assume full operational control, enhancing its surface preparation and coating services.