Genting Hong Kong completes €230.6m acquisition of three German shipyards


Nordic

Genting Hong Kong has completed the acquisition of Nordic Yards' three shipyards in Wismar, Warnemunde and Stralsund, Germany for a consideration of about €230.6m.

The acquisition is expected to add to Genting's core expertise, manpower, fabrication capacity and covered drydocks to construct a global cruise fleet for its three brands; Crystal Cruises, Dream Cruises, and Star Cruises.

Genting Hong Kong chairman and CEO Tan Sri Lim Kok Thay said: "We are pleased with the completion of the transaction as ownership of the yards provides certainty that we can build a fleet of high quality cruise ships at a pace dictated by our growth rather than constrained by supply as cruise ship order book continues to reach all-time highs, with orders placed as far out as 2026, ten years from now.

“The three newly acquired shipyards feature covered drydocks and building halls, facilitating a high level of labour productivity and completion quality.”

"We will begin by building four Crystal river ships scheduled for delivery in 2017 and Crystal Endeavor, the first purpose-built polar class expedition mega yacht, for delivery in 2018.

"Our goal is to grow the yard output to two Mega cruise ships and one mid-size cruise ship or mega yacht a year within a decade, not only for our own fleet but also for other cruise lines and yacht owners."

The new yards will join the previously acquired Lloyd Werft shipyard in Bremerhaven, which will all be managed under the banner of Lloyd Werft Group, thereby optimising the strengths of each yard for design, fabrication, outfitting and final assembly using the two covered drydocks in Wismar and Warnemunde, and one ship launching lift in Stralsund.

The three newly acquired shipyards feature covered drydocks and building halls, facilitating a high level of labour productivity and completion quality as cruise ships can be constructed regardless of weather conditions.

The Wismar shipyard's drydock is 340m long and 67m wide and the Warnemunde shipyard's drydock is 320m long and 54m wide, and can build cruise ships of 200,000 gross tonnes each.

The Stralsund shipyard features covered shipbuilding fabrication halls and a ship lift to launch completed cruise ships and megayachts up to 270m long, or around 50,000 gross tonnes each.

The company is planning to invest another €100m in thin steel fabrication facilities, a cabin module factory, and other improvements, and along with the existing production capacity in three yards, will be able to build two mega cruise ships and a mid-size cruise ship or megayacht a year by the next decade.

Lloyd Werft managing director Rüdiger Pallentin said: "Tan Sri Lim, chairman of Genting Hong Kong will be signing a significant new multi-ship order with the Lloyd Werft Group on 10th May and these orders will help support the German and European shipbuilding industrial sector and employment during the current shipbuilding downturn."

Pallentin further added that a new Lloyd Werft Design Center in Bremerhaven will open on 9 May, which will house more than 250 designers.


Image: An image of Nordic Yards Wismar. Photo: courtesy of Alexander Koker.