The Victoria arm of Canadian Maritime Engineering has shut its doors and its equipment will now be used by Victoria Shipyards at the Esquimalt Graving Dock property.

Washington Marine Group, owner of Victoria Shipyards, purchased the assets of CME, signing papers on Monday, said Malcolm Barker, Victoria Shipyards manager.

Word came out about six weeks ago that CME was closing its doors, Barker said yesterday. CME, with offices in Nova Scotia and Ontario, leased federal space at the graving dock.

CME's properties, including shop space, offices and standard ship-building machinery and equipment, "complemented our assets," Barker said. "It gives us more flexibility and capability."

He would not reveal the price but said, "It is a significant acquisition."

Washington Marine Group CEO Jonathan Whitworth said the purchase will make Victoria Shipyards more competitive in the marketplace, and allows the yard to pursue "future business opportunities."

At one time, CME and Victoria Shipyards competed for similar jobs. But local shipbuilding and repair work has slowed. Union officials have been highlighting concerns about unemployment among members for several months.

Rick Spencer, business manager for Local 1204 of Laborers International Union of North America, Dock and Shipyard Workers Union, was not surprised to see CME close. "Nobody had work."

Spencer said "it is a plus" that Victoria Shipyards bought the assets.

Washington Marine Group announced recently that it was cutting its shoreside staff by 20 per cent as it faces fallout from the world-wide economic recession. Barker would not say how many jobs were lost locally.

In coming months, Washington Marine Group plans to buy other mobile buildings as it embarks on the $351-million, multi-year contract to upgrade five Halifax-class frigates, based at CFB Esquimalt.

One Canadian Coast Guard vessel is currently at Victoria Shipyards for a refit.

But from January through March of next year, "It is going to be pretty lean," Barker said.

In April, HMCS Regina arrives at the graving dock for 18 to 20 weeks. About 250 workers will be on that project, Barker said.

The multi-ship frigate work starts in earnest in March 2011 and will run into 2017, he said.

Barker is looking forward to further private and public-sector jobs next year, which he predicts will keep an average of 250 workers on the job throughout the year. Jobs are generated during the cruise-ship season when the huge vessels arrive at Ogden Point.

Work starts next year on a $19.6-million contract to build five 14-metre motor lifeboats for the Canadian Coast Guard.

Plus, Victoria Shipyards and partner companies were awarded a five-year, $375-million contract to maintain the Canadian military's submarines.

cjwilson@tc.canwest.com