UK-based BAE Systems has sold its San Francisco Ship Repair business to US-based ship repair company Puglia Engineering.

Based in Tacoma, Puglia Engineering is currently operating two shipyards in Washington, US.

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Situated at the heart of the Pacific Rim trading routes, the San Francisco shipyard, which serves as a premier yard in the Bay Area, operates as a full-service repair facility.

"We believe this divestiture is in the best interests of the San Francisco shipyard employees and both companies."

BAE Systems president Erwin Bieber said: “We believe this divestiture is in the best interests of the San Francisco shipyard employees and both companies, as it will better position the San Francisco Ship Repair business with a parent company that has access to broader markets.

“We greatly appreciate the hard work and dedication of our San Francisco shipyard team.”

The dry dock carries out alterations, maintenance and repair works for cruise liners from Alaskan and Mexican trade routes, military support vessels, local bay traffic, trans-Alaska pipeline tankers, and both foreign and domestic bulk carriers and container ships.

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The shipyard is capable of lifting large cruise ships, which currently serves the US Pacific coast.

The San Francisco facility also has the necessary certificates and permits, as well as approved processes that are required for repairing all major ships.

The San Francisco shipyard features two floating dry docks that can lift 54,600t and 14,500t of weight respectively, a pier space that includes three berths to 700ft and a crane capacity of up to 60t.

BAE Systems operates six full-service shipyards in Florida, Hawaii, Alabama, California, and Virginia.