By
Rebecca Gibson |
Genting Hong Kong (GHK) has completed its €230.6 million acquisition of Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany.
GHK, which also purchased German shipyard Lloyd Werft in 2015, has acquired the three additional yards to ensure it has the expertise and capacity to construct newbuilds for its three cruise brands – Crystal Cruises, Star Cruises and Dream Cruises – over the next decade. This will help to reduce challenges associated with pricing and delivery timings.
All four yards will be managed as part of the Lloyd Werft Group.
“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,” said Tan Sri Lim Kok Thay, chairman and CEO at GHK. “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.”
Nordic Yards’ three yards all have covered drydocks and building halls, enabling cruise ships to be constructed regardless of weather conditions. Wismar has a 340-metre-long drydock, while Warnemunde’s drydock measures 320 metres in length, making both capable of building cruise ships larger than today’s biggest vessels. The Stralsund shipyard has a ship lift to launch cruise ships and mega yachts up to 270m long. GHK also plans to invest in all three shipyards to ensure they have a combined steel fabrication capacity of around 150,000gt a year.
The company will invest a further €100 million in thin steel fabrication facilities, a cabin module factory and other improvements to enable to build two mega cruise ships and a mid-size cruise ship or mega yacht annually by the next decade.
“Tan Sri Lim will be signing a significant new multi-ship order with the Lloyd Werft Group on 10 May and these orders will help support the German and European shipbuilding industrial sector and employment during the current shipbuilding downturn,” said Rüdiger Pallentin, managing director of Lloyd Werft. “To support the new shipbuilding programme, Hui Lim, executive director at the chairman's office and CIO of GHK, will open the new Lloyd Werft Design Center in Bremerhaven on 9 May, which will house more than 250 designers. And, die Rodriguez, president and CEO of Crystal Cruises, will officiate at the steel cutting ceremony for the Crystal river ships also on 9 May.”