The Occupational Safety and Health Administration on Wednesday said it cited Honolulu Shipyard for what it called "two willful and 12 serious violations" of federal and health regulations.

The shipyard said it plans to contest the fines, noting that it has a better safety record has than most shipyard operators in Hawaii and on the mainland.

OSHA said it has fined the company several times during the past 11 years for similar violations but noted that work safety conditions have not improved. Since 1985, employees have suffered amputations and smashed fingers because of unguarded power equipment, OSHA said.

"The hazardous situation at Honolulu Shipyard is very troublesome because the employer continues to put workers at risk despite repeated citations and ongoing serious injuries," said Frank Strasheim, OSHA's regional administrator.

OSHA, which inspected the local shipyard last year, said that the company improperly stored flammable liquids; didn't provide adequate safety guards for its machinery; and lacked appropriate emergency exits, eye washes and showers, and ventilation at its Pier 41 location.

The company disputed OSHA's assessment, saying it hasn't had a serious injury in several years. Brian Loui, a Honolulu Shipyard vice president, said the company has had fewer workers compensation claims than local and national competitors.

Loui said company representatives plan to meet OSHA enforcement director Leonard Limtiaco next week. If the two sides are not able to resolve the dispute, the company may formally appeal the fines, Loui said.

He said the fines come at a time when Hawaii's shipyard operators have been suffering tough times. Due to Defense Department cutbacks in the past several years, local shipyards have seen a major reduction in the number of ships they service and repair, he said.

Founded in 1904, Honolulu Shipyard is owned by Pacific Marine and Supply Co. The shipyard, which employs about 150 workers, specializes in the repair of U.S. Navy ships.