Norwegian shipbuilder Havyard Group has revealed an outbreak of coronavirus that has shut the plant down.

On 30 September, restructured shipyard unit New Havyard Ship Technology closed temporarily after four positive cases were identified.

The Saevik family-owned company then worked closely with local health authorities to clarify the extent of the spread of the virus, testing 200 people.

On Friday, 17 people associated with the yard were diagnosed with Covid-19.

10 October opening?

"In order to prevent further spread of the virus and to gain control of the situation, Hyllestad municipality has today, pursuant to the Infection Control Act, decided to keep the yard business closed until 10 October 2020," the shipbuilder said.

It added that the closure could be extended.

"For the vessels that are being outfitted at the yard, it is foreseeable that the closure may lead to delayed deliveries," Havyard admitted.

Any delay will depend on the extent of the shutdown and what measures can be implemented to make up for the lost production time, the yard said.

The shipbuilder is constructing a platform supply vessel (PSV) for Atlantic Towing, a car and passenger ferry for another Saevik company — Fjord1 — and three accommodation vessels for Esvagt.

The first of the floatels is due this month, according to Clarksons.

The group fully financed the remaining five ships in its orderbook in a deal with banks and shipowners in May.

The move came as subsidiary Havyard Ship Technology is undergoing bankruptcy proceedings after being unable to pay creditors.

Havyard Ship Technology's shipbuilding business has been transferred to the new subsidiary, New Havyard Ship Technology.