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Panama City, Fla.—Eastern Shipbuilding Group has announced a suspension of its work on the U.S. Coast Guard’s Offshore Patrol Cutter (OPC) program, citing severe financial pressures linked to the program’s existing structure and requirements.
Before the halt, the shipbuilder had been progressing on two of the four OPC vessels originally assigned to it. This followed the July decision by Department of Homeland Security Secretary Kristi Noem, who terminated the contracts for the other two cutters.
In a formal statement, Eastern Shipbuilding CEO Joey D’Isernia described the decision as both difficult and necessary:
“Eastern Shipbuilding Group has made the difficult decision to suspend work on the Offshore Patrol Cutter program due to significant financial strain caused by the program’s structure and conditions. Despite our best efforts, continuing under the current circumstances is not sustainable.
“Unfortunately, we also had to reduce our workforce—an extremely hard step, as our people are the strength of this company.
“This action allows us to remain financially stable and focused on delivering for our government and commercial customers.
“Our shipyards will continue to build quality American vessels and support the regional economy. We’ve overcome a major hurricane and a global pandemic, and we will overcome this challenge as well.
“We are grateful for our team’s professionalism and for the ongoing trust of our customers and community. Eastern Shipbuilding Group remains firmly committed to American shipbuilding.”
D’Isernia emphasized that the company will continue operations across its facilities, reaffirming its commitment to serving both governmental and private-sector clients while navigating the current challenges.
