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Genting Hong Kong to acquire shipyards from Nordic Yards
Genting Hong Kong, a leading global leisure, entertainment and hospitality company, announced the acquisition of Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany for the consideration of 230.6 million Euros. The purchase of the three shipyards, along with Lloyd Werft last year, enables Genting Hong Kong to realize its global cruise ships fleet strategy over the next decade for its three brands - Crystal Cruises, The World's Most Awarded Luxury Cruise LineTM; Dream Cruises, Asia’s Most Luxurious Cruise Line; and, Star Cruises, Asia’s Leading Cruise Line.

“The rapid growth of the world cruise industry, especially in China, has led to cruise ship order book reaching an all-time high,” said Tan Sri Lim Kok Thay, Chairman and Chief Executive Officer, Genting Hong Kong. “In order to ensure that the Company can build the required number of cruise ships in the next decade for our global fleet expansion, it is strategic that we acquired shipyards that can build our cruise ships in a timely basis and in a more cost effective manner.”

The newly acquired yards together with the previously purchased Lloyd Werft will be managed as the Lloyd Werft Group, optimizing the strengths of each of the yards for design and construction of cruise ships and megayachts. Ownership of the shipyards will free the Company from both the delivery timing and pricing uncertainties associated with the cruise ship order book cycle, which is at a historic high and allow management to focus on the strategic planning, design and deployment of its planned cruise ships among its three brands.

The three newly acquired shipyards are unique with covered drydocks and building halls, resulting in high labor productivity and completion quality as cruise ships can be constructed regardless of weather conditions. The Wismar shipyard’s drydock measures 340m long and 67m wide and the Warnemunde shipyard’s drydock measures 320m long and 54m wide and are capable of building cruise ships larger than the largest cruise ships currently afloat. The Stralsund shipyard has a ship lift to launch cruise ships and megayachts up to 270m long. These shipyards, with further investment, will have a steel fabrication capacity of about 150,000 tons a year, sufficient to build a number of cruise ships and a megayacht yearly.

“With all the yards situated in Germany, a country with a long tradition of efficiency in building high quality and innovative cruise ships and megayachts, the Lloyd Werft Group, with approximately 1,700 experienced management and workers, is well placed to succeed as one of the best cruise and megayacht shipbuilding companies in the world. Germany is also where the largest cluster of marine equipment suppliers are located and has excellent Government maritime coordination policies,” said Tan Sri Lim Kok Thay. “The investment in the Lloyd Werft Group will have good returns from the 10 year planned order book, fits perfectly with the Company’s global cruise strategy and is in the long term interest of the Company”.
 

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