Moray East jackets supplier Lamprell shutting down 2 UAE yards

The Sharjah facility. Source: Lamprell Plc

April 14 (Renewables Now) - UAE-based fabrication, engineering and contracting services provider Lamprell Plc (LON:LAM) will close its Sharjah yard after it concludes work on the 950-MW Moray East offshore wind project in Scotland.

The company said it has closed its Jebel Ali facility in January and plans to do the same with the Sharjah site later this year, keeping just the Hamriyah yard, which is its largest and could be expanded if necessary.

Lamprell made those decisions after reviewing its current operational footprint against medium term fabrication requirements. The move is seen to lower overheads for 2020 by about USD 23 million (EUR 21m) and lead to a non-cash impairment charge of some USD 13.2 million, to be included in the 2019 financial statements. For 2020, there will be an estimated one-off charge of USD 7.5 million relating to the demolition costs in Sharjah and staff termination costs.

In December 2018, Lamprell announced that it won a USD-200-million-plus contract from a unit of GeoSea NV, now known as DEME Offshore, to fabricate 45 jacket foundations for the Moray East wind park along with three jackets for the offshore substations. The supply of the remaining jacket foundations has been awarded to Smulders in the UK.

Today, Lamprell said that despite the coronavirus situation it has delivered the first jackets to the client on time and on budget. However, it noted that the pandemic will inevitably have some impact on productivity and will result in increased costs.

Last month, Belgium-based DEME Offshore announced it had installed all foundation pin piles at the project site and was proceeding to the next stage of offshore works, during which its new vessel Orion will integrate 103 jacket foundations and three topside modules with the newly installed piles.

(USD 1.0 = EUR 0.913)

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