Cleaves Securities CEO Per Olav Karlsen says a restructuring at its US shipbuilding subsidiary Fraser Industries is progressing well, three years after its initial investment.
The Norwegian investment bank bought into the Wisconsin and Virginia-based group in 2021 through Infrastructure Acquisition Partners, a joint venture with Foundry Mountain Infrastructure Partners.
“We are finding US shipyards to be a very interesting bet,” Karlsen told TradeWinds.
“We have done a turnaround workout that is still continuing.”
Karlsen said there have already been great improvements in efficiency, cost control, applied man-hours and productivity.
“We are pleased to see recent attention to the need to revitalise US shipbuilding,” he said.
Fraser had been under the ownership of Duluth-based Capstan Corp since 1977.
The group includes the main Fraser Shipyards in Superior, Wisconsin, plus shipbuilder Lake Assault Boats and repairer Northern Engineering.
Fraser has just sold a new bond for an undisclosed amount to bolster investment.
“The financing agreement, finalised at the end of March, positions Fraser well to continue building on its historic foundations, driving innovation in the maritime sector and contributing to the economic growth of the Superior area,” the group said.
‘Robust workforce’
The deal paves the way for “a sustainable and robust maritime workforce for future generations”, it added.
The company has been involved in ship construction and repair since 1890.
It is building a 150-passenger car ferry called Floating Bride for Beausoleil First Nation of Canada. The ship is due in June.
“These funds will be instrumental in upgrading and expanding our existing facilities, purchasing new equipment and enhancing our services to meet the evolving needs of our customers,” Fraser chief executive Patrick Kelly said.
“This investment will not only drive growth and innovation at the yards, but also create new opportunities for the workforce in Superior and Portsmouth [in Virginia].”
Kelly said federal, county and city backers have made good on their pledges to help secure funds for the “historic investment”.
“We look forward to collaborating with government leaders in the future as we advance our mutual goal of making Superior a global maritime leader,” he said.
