This year will be a pivotal one for Arab shipbuilding repair yard (Asry), said its chairman Shaikh Daij bin Salman Al Khalifa in the company's annual report.

'We are entering our 35th year of operation and nearing the successful completion of our $188 million facility expansion programme, which will make us more competitive in a fast changing market,' he said.

'Understandably, during the last two years, many shipping companies have deferred major repairs, or even laid up parts of their fleets, and this did have an adverse impact on Asry's business volume.

'However, as global trade gathers momentum, I am optimistic that the situation will change and the pace of recovery in the shipping industry will improve before long and with that the fortunes of Asry will also rise significantly,' he added.

He said that 2010 continued to be a challenging year for the global economy and for the global shipping industry, though definite trends of recovery were witnessed in the second half of the year.

For Asry, too, the first half was an extremely difficult period with business volumes declining, he added.

However, the second half recorded a significant improvement in performance and financial results and, overall, Asry repaired a record number of vessels during the year, he said.

'I'm cautiously optimistic for Asry, though I do realise that we will not see the excellent market conditions of 2008 return any time soon,' Shaikh Daij added.

'Once the shipping industry picks up and gathers momentum, we will be able to push forward with new plans and ventures, both at home and internationally, but only when the time is right,' he said.

'More revenue and more profit for Asry will mean that we can reinvest in the company to implement more ambitious projects in the future to improve productivity and further enhance the range and quality of services to our customers.

'Asry is keen to expand its operations and reach high standards of excellence and we are achieving a remarkable and sustainable progress despite the challenges the company faces in the market,' he said.

'This could not have been achieved without the continuous support and encouragement of the shareholding countries.

'I express my appreciation and gratitude to all our shareholders, especially Bahrain's government, for their excellent and continued support,' Shaikh Daij added.-TradeArabia News Service