IHC Caland will thus cease to be directly involved in shipbuilding.

The yard has struggled to obtain orders in recent years following the end of direct subsidies and has also suffered from stiffer Asian competition.

The market for offshore support vessels has slowed and that for cable laying vessels has virtually disappeared. 9/11 put an end to cruise ship orders and the yards which built them also became competitors in van der Giessen's territory.

Despite the shock news of van der Giessen's closure, IHC Caland's half year results still showed a profit of $34.2m. With the exception of a $45m post tax provision for the yard's closure, the group remains on target to meet its profit forecast of $110m, although the entire bottom line will come from the offshore side of the business for the second year in a row.

MJ Information No: 18610