THE chief executive of the Belfast shipyard Harland & Wolff has said that the oil tanker Knock Muir, now in the final stages of construction, could be the last conventional ship to be built at Queen's Island for many years.

Mr Per Nielsen, speaking at the naming ceremony for the vessel, said the completion of the contract for five Suezmax oil tankers, an order placed by the yard's majority shareholder, marked the beginning of a new strategy which would take it into the growing off shore oil and gas markets.

"It is difficult to see further standard ships being added to our order books for some years, Mr Nielsen said, given the extremely low prices which currently prevail for more or less all types of standard vessels."

He said overcapacity had a disastrous effect on the industry. "The main reason is that it is not true market forces which are dictating where new building contracts are placed.

"Instead, it is the political will of many countries and major corporations. We have seen in all parts of the world that shipyard facilities are an extremely useful tool in creating infrastructure."