Mare Island Dry Dock (MIDD), Vallejo, Calif., has ceased operations effective Jan. 1, following what the company described as “unfortunate circumstances beyond our control.” The closure reportedly affects up to 80 full-time workers and removes a significant ship repair facility from the U.S. West Coast.

The City of Vallejo said the company notified local officials of the decision on Dec. 30.

“Despite efforts to secure additional financing and contracts, Mare Island Dry Dock determined that continuing operations was no longer viable,” the City reported.

According to the City, MIDD attributed the shutdown to “unforeseen business circumstances, including the loss of a critical U.S. Coast Guard contract that had an immediate and material impact on the company’s financial stability.”

The company recently lost its bid to continue work on the Coast Guard icebreaker Healy, with the contract instead awarded to Vigor Marine, Portland, Ore. Following the loss of the Healy contract, the company said the financial impact left little margin to bridge the gap while seeking replacement work.

MIDD had performed maintenance for Coast Guard polar icebreakers including the Healy and Polar Star for the past five years. The yard had also been pursuing a new five-year maintenance contract for the Polar Star.

The closure leaves a significant West Coast repair asset offline at a time when federal agencies and commercial operators continue to seek U.S. yard capacity for maintenance and modernization projects. The company's yard included two concrete graving docks capable of handling vessels up to 700', as well as more than 1,200' of berthing.