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AUSTRALIA'S INCAT HELPED BY US ARMY US$38 MLN PURCHASE.

AsiaPulse News

| October 01, 2002 | COPYRIGHT 2002 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

HOBART, Oct 1 Asia Pulse - The US Army is coming to the rescue of the struggling Tasmanian shipbuilder Incat, with a catamaran order worth up to $A70 million ($US37.88 million).

Company founder and chairman Robert Clifford said the sale would go a long way toward "moving the receiver on".

Incat was once the state's biggest private employer with a workforce of more than 1000 but with lagging sales and ballooning debt its core companies went into receivership in March this year.

The sale to the US Army will allow Incat to effectively clear its private sector debt, although it still owes the state government $A30 million ($US16.24 million).

"This in itself doesn't answer all stories, although it is a very large step towards that," Mr Clifford told AAP.

He said another contract with a European commercial customer, who is due to arrive in Hobart tomorrow, is expected to be finalised next week.

"The two (sales) together will say ...

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