Genting Hong Kong Seals Nordic Yards Takeover

Genting Hong Kong has concluded the EUR 230.6 million (around USD 260 million) acquisition of Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany, the company said.

The takeover is aimed at enabling the company to build a cruise fleet for its three brands – Crystal Cruises, Dream Cruises and Star Cruises.

“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 Chief Executive Officer, Genting Hong Kong.

According to Tan Sri Lim, the yards will now start building four Crystal river ships scheduled for delivery in 2017 and Crystal Endeavor, the first purpose-built polar class expedition megayacht, slated for delivery in 2018.

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

The newly acquired yards, together with the previously purchased Lloyd Werft shipyard in Bremerhaven, will be managed as the Lloyd Werft Group.

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

The company said it would further invest about EUR 100 million in thin steel fabrication facilities, cabin module factory and other improvements.

“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,” said Rüdiger Pallentin, Managing Director of Lloyd Werft.