by the end of 1982, british shipbuilders had closed half of its shipyards in an effort to reduce over-capacity. the terms of the british shipbuilders act 1983 then required the company to begin a process of privatising its remaining assets. the various divisions that had remained under integrated nationalised ownership were divested throughout the 1980s as the company wound up operations. the profitable warship-builders were sold off initially, with the merchant shipyards sold off or closed on a piecemeal basis, culminating in the sale of govan shipbuilders to kvaerner in 1988 and ferguson shipbuilders to the privatised marine engine builder, clark kincaid, in january 1989. british shipbuilders finally ceased active shipbuilding operations in 1989, with the closure of its last shipyards: north east shipbuilders ltd.'s pallion and southwick shipyards at sunderland. the remaining assets of north east shipbuilders ltd. were then privatised.