Mytilineos Eyes Major Stake In Shipyard

Tuesday, November 21, 2000
Greek engineering and metallurgy group Mytilineos is eyeing a majority stake in Hellenic Shipyards in an effort to penetrate further into Greece's defense industry, a company official said. "The group is interested in acquiring a 51 percent stake in Hellenic Shipyards at Skaramanga, however, this will depend on the terms to be set by the Greek government," Vangelis Mytilineos said.

"The shipyard has liabilities of 100 billion drachmas and 2,200 employees. We are in talks with Greek and foreign parties to form a joint venture but more important will be securing better privatization terms."

Last week, in an amendment to a draft bill presented to parliament, Greece allowed for ETBA Bank that owns 51 percent of the shipyard to reduce its stake, opening the way for its full privatization.

While deep in debt, Hellenic Shipyards is considered attractive in large part because of its participation in the defense ministry's 4.0 trillion drachma armaments programs -- the building of warships and submarines for the Greek navy.

"A modern shipyard is effectively an assembly line and this can be fully complemented by Metka, which applies this logic in the case of ELBO, the Hellenic Vehicles Industry," Mytilineos said. In late August Mytilineos and subsidiary Metka agreed to buy a 43 percent stake in ELBO for 4.14 billion drachmas. "An investment of $100 million is absolutely necessary to upgrade Hellenic Shipyards and workers must have a 10 to 20 percent participation so that everyone has an incentive and benefits from its recovery," he said.

But finding funds to finance such an investment is a difficult task nowadays as share prices have significantly deflated on the Athens bourse. "We have significant liquidity of 30 to 40 billion drachmas today and a very good credit rating should we opt to borrow funds," Mytilineos said.

"We are not in a hurry for the shipyards. Don't forget that if we manage to turn around ELBO, this will be an advantage for our plans to take over the shipyards. We want their workers to see this."

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

USCG Free Boat from Ice Near Woods Hole

A Coast Guard crew responded to a fishing vessel trapped in ice in Woods Hole Passage, Woods Hole, Massachusetts, Saturday. At about 3 p.m., the crew of the fishing boat Capt.

Tug Boat Owner Jailed After Crew Man Dies

A tug boat owner was today was given an 8 month custodial sentence after his crew member died trying to reattach a tow line in a violent storm. During today’s hearing at Southampton Crown Court,

COMPIT to Showcase Smarter Ships, Systems & Solutions

The 14th International Conference on Computer and IT Applications in the Maritime Industries (COMPIT) will take place from 11th to 13th May 2015 in Ulrichshusen, Germany.

Contracts

Chassis Pools for Port of Long Beach

Three companies that own the vast majority of chassis serving the San Pedro Bay ports are on track to activate a “gray chassis fleet” of truck-trailers on March 1,

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

 
 
Maritime Security Maritime Standards Naval Architecture Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1801 sec (6 req/sec)