The New York-quoted shipbuilding conglomerate has had little to say about Avondale as of late but did provide a brief update in its annual report.
“Although closure is still the baseline assumption for Avondale, we are pursuing other opportunities to utilize this facility,” HII told investors Thursday.
Avondale has been a candidate for closure for some time but management pledged to explore the possibility of re-entering the commercial shipbuilding arena in 2013.
While this initiative failed to bear fruit HII launched a joint study a year later after forging an alliance with Kinder Morgan Energy Partners.
In April 2014 the duo indicated that the investigation of Avondale’s options would take approximately six months.
“If an economically viable best use of a facility is determined, the companies may pursue the formation of a joint venture to redevelop the Avondale site,” HII added.
“However, if we are unsuccessful in these efforts, we will proceed with our plan of record and close the facility.”
At the time HII, which specialises in the construction of tonnage for the US government, noted Avondale's location on the Mississippi River “offers unparalleled access to major markets by truck, rail and sea, making it attractive for many uses”.
While it is widely believed that the joint study is still underway critics who are active in the Jones Act market continue to think that Avondale’s days are numbered.
