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BAE to Close AL Shipyard

Tuesday, March 6, 2018

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Shipbuilding and defense contractor BAE Systems announced last week it will be closing its Mobile, Alabama, shipyard, ending repair services immediately and laying off more than 150 employees.

BAE Systems Southeast
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BAE Systems will close its Southeast Shipyards Alabama this year, ceasing repair operations immediately.

The company informed employees at its Southeast Shipyards Alabama location of the move Wednesday (Feb. 28) and told Mobile media the move was a result of the long-term slump in oil and gas drilling operations in the Gulf of Mexico; the Mobile facility had largely served the offshore industry.

Recent Layoffs

BAE Systems Inc., the U.S. subsidiary of U.K.-based BAE Systems PLC, reports annual sales of around $10 billion. The company laid off nearly 200 employees at its Norfolk shipyard last May and June, and prior to that, BAE sold its Pier 70 shipyard in San Francisco to Puglia Engineering, a transaction that led to a lawsuit from Puglia and 220 layoffs as the facility was shut down.

According to AL.com, the shutdown in Mobile will result in the loss of about 155 jobs. While repair operations ceased immediately, new construction will reportedly continue through the spring; by the end of June, the facility will be shuttered.

The U.S. Energy Information Administration reports that the U.S. Gulf of Mexico offshore rig count has declined more or less steadily since the early 2000s. The EIA notes that 20 rotary rigs were in operation in the Gulf in 2017, compared to 72 a decade ago and 122 in 1997.

   

Tagged categories: Layoffs; NA; North America; Offshore; Program/Project Management; Ships and vessels; Shipyards

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