CanAm’s 42nd EB-5 Project Fully Underway as Aker Launches Hull #21

New York, NY - CanAm Enterprises, LLC (CanAm) is pleased to announce that its 42nd EB-5 Project, a $60 million loan to Aker Philadelphia Shipyard, Inc. to fund the construction of four oceangoing tankers at a cost of $481 million, is well underway. The first of the tankers, Hull #21, was launched on April 7, 2015 and is now entering the final sea-testing phase of production ahead of an on-schedule delivery into operation by August 2015, as planned.

The Exemplar I-526 Petition Business Plan for the $60 million EB-5 loan to Aker was approved by USCIS on March 12, 2015, and the loan closed on March 16 and was fully funded on May 29, 2015.

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As part of the evolution of its business, Aker has entered into a shipbuilding contract with Crowley Petroleum Services, Inc. (“Crowley”), a company in Crowley Maritime Corporation’s petroleum and transportation group. Crowley is a privately-owned U.S. transportation and logistics company that employs approximately 5,300 people and has revenues of $1.8 billion. Under the contract, Aker will construct four product tankers (Hull Numbers 21, 22, 23, and 24). In addition, Aker and Crowley will partner  together for the ownership, chartering and operations of all four tankers. The tankers will be jointly owned by Aker and Crowley, and under time charter contracts with major oil companies.

At a cost of approximately $108 million to build each tanker, construction of the tankers will partially overlap, with the first tanker delivered approximately Third Quarter of 2015 and the fourth tanker delivered in the Second Quarter of 2016. On April 23, 2015, the first block of Hull #23 was placed in the Building Dock, joining Hull #22. Hull #24 continues to be in the prefabrication stage.

The EB-5 loan for Hull Numbers 21-24 marks the second made to Aker by the Regional Center based in Philadelphia and operated jointly by CanAm and the Philadelphia Industrial Development Corporation (PIDC), the City’s economic development agency. A $15 million loan was used in 2007 to redevelop a 40,400 square-foot warehouse into an open floor plan administrative, planning, and engineering space, as well as to construct a new paint facility that has enabled the company to fulfill long-term contracts. The previous EB-5 loan was fully repaid on August 30, 2012.

"CanAm was with us when we first needed to grow our business back in 2007, when we were manufacturing oceangoing tankers but working out of trailers. Its EB-5 funds helped us build a state-of-the-art headquarters here at The Navy Yard. And it was there for us again as we partnered in a new joint-venture to construct Hulls 21- 24. The EB-5 funds we have deployed into our business support the substantial employment at the shipyard and the company's ongoing growth. We strongly recommend CanAm for the quality of execution and their personalized service that they provide." Jeffrey Theisen, Chief Financial Officer, Aker Philadelphia Shipyard, Inc.

Adds Tom Rosenfeld, President and CEO of CanAm, "The jobs created through Aker’s projects are especially critical to a city with such deep industrial and manufacturing roots as Philadelphia. Throughout its various EB-5-funded expansion initiatives, Aker has remained committed to hiring, training, and retaining high-skilled local labor, rather than outsourcing positions abroad like many of its counterparts. Aker is reviving the shipbuilding industry in the United States and creating thousands of jobs for the City of Philadelphia. It has been a pleasure to support a company that is having such a tremendous impact on this country’s manufacturing capabilities."

The Philadelphia Naval Shipyard operated as a naval base for 120 years until it was decommissioned in 1996. Employing more than 40,000 people during its peak production period in World War II, the Shipyard produced 53 warships and repaired an additional 1,218 during this time. The dedicated workers employed at the Shipyard throughout its storied history embodied the best of American manufacturing, ingenuity, and perseverance. Each worker, like the ships they helped build or repair, are an indelible part of the history of the City of Philadelphia and our nation at large.

The old shipyard "was an important employment center and a historic connection between the U.S. Navy and the City of Philadelphia," said PIDC President John Grady. "When the Navy announced the closure in the mid-1990s, it was a significant economic blow to the city. It came at a time when the city was on the edge of bankruptcy and experiencing a lot of job loss."

Ten years into the implementation of a Master Plan to revive and redevelop the Philadelphia Naval Shipyard, this former naval base is now striving as 'The Navy Yard'. Through the efforts of the City of Philadelphia, the Navy Yard has undergone in excess of $150 million in publicly funded infrastructure improvements, which have additionally leveraged more than $750 million in  new private investment. These investments have helped transform the naval base into a bustling, 1,200-acre business campus where 145 companies employ more than 11,500 people across 7 million square feet of office, industral/manufacturing, and research and development space.

Despite its robust transformation into a commercial epicenter, The Navy Yard has nevertheless preserved its industrial and manufacturing lineage, with companies like Aker continuing to build ships and support the shipbuilding industry through a variety of public and private initiatives.

Aker Philadelphia Shipyard, Inc. (Aker) is the U.S. operating subsidiary of Aker Philadelphia Shipyard ASA, a publicly traded company listed on the Oslo Stock Exchange (AKPS) and headquartered in Oslo, Norway (AKPS). AKPS is part of the larger Aker Group of Companies, which are majority-owned by by Kjell Inge Røkke.

Kværner Philadelphia Shipyard established the commercial shipyard in 1997 as part of the City of Philadelphia’s efforts to convert the former U.S. naval base beginning in 1995. Aker acquired Kværner in 2005 to manufacture oceangoing tanker vessels based on a design from their affiliated shipyard in Germany and modified by Aker to meet the needs of the U.S. domestic markets. Since then, in addition to four container vessels, Aker has delivered 16 product tankers to major international shipping companies such as Matson and OSG as its purchasers.

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