Martin Saarikangas News

Kvaerner ASA has postponed a planned sale of its Masa-Yards Finnish shipbuilding unit in a new setback to its goal of exiting shipbuilding. Kvaerner said it had failed to find a right buyer for Masa-Yards, which specializes in building cruise ships and has an order reserve of $2.6 billion, and would instead concentrate on raising the unit's profitability. "Talks (about a sale of Masa) have not led to a satisfactory agreement," the company said in a statement. "As a consequence, Kvaerner will now concentrate on carrying out the improvement program set in place to obtain satisfactory results." Kvaerner said the decision would not affect its goal of cutting huge debts.

The head of Kvaerner's Masa-Yards Martin Saarikangas reportedly announced that a group of buyers were in talks to make an offer for the Finnish shipyards.

The head of Kvaerner's Masa-Yards Martin Saarikangas reportedly announced that a group of buyers were in talks to make an offer for the Finnish shipyards.

Masa-Yards, a unit that Kvaerner has put up for sale, could cooperate in building vessels with the Polish Gdynia shipyard, the group's head said. "One alternative would be for us to have a cooperation agreement with them and to use their very efficient facilities," Masa-Yards Chief Executive Martin Saarikangas said. Gdynia shipyard had planned to bid for Masa-Yards, but a consortium formed by Saarikangas won the support of the Finnish government to keep the group's two yards in Helsinki and Turku in Finnish hands. Saarikangas said through cooperation and lower labor costs in Poland, Masa-Yards could gain a competitive edge on other Western shipbuilders. He said Masa-Yards will ask the government and parliament to back a "reasonable" subsidy for the Finnish shipbuilding industry.

Rumors have it that Kvaerner Masa-Yards is on the brink of bringing in a $1.2 billion deal to build three new cruise ships for Carnival. The shipyard, which has been for sale by parent Kvaerner ASA since earlier this year when the company announced it would dump shipbuilding altogether, is currently set to deliver the world’s largest cruise ship ever built, Royal Caribean’s Voyager of the Seas, in about one month. Further, the new contract would more than likely strengthen the bid by current management – led by Martin Saarikangas – to buy the shipyard from Kvaerner. As of Monday, October 11, there was no official word from either the shipyard or Carnival.

The Polish Gdynia shipyard fears Finland's government may scupper its bid to take over two Finnish yards put for sale by the Kvaerner, Gdynia's chief executive said. "On merit, our merger is the best business initiative within the European shipbuilding industry," Janusz Szlanta said. "If the Finnish government does not intervene, we will succeed," he said. Industry sources say Gdynia's bid is the best offer Kvaerner has, but it received a cool reaction from Masa-Yard's management, which has formed a rival consortium. The Polish challenge - the first major attempt by a company from the former East Bloc to expand into the European Union - stirred the Finnish government as well.

Finnish State To Join Bidding For Masa-Yards The Finnish state plans to join the bidding for Masa-Yards, the Finnish shipyards of Anglo-Norwegian engineering firm Kvaerner, according to news reports. Officials said that the state plans to invest some tens of millions of markka into the company and to secure a seat on its board to safeguard its interests in guaranteeing orders. Poland's Gdynia shipyard and a group led by Masa-Yards Chief Executive Martin Saarikangas are said to be making a joint bid for the two yards in Turku and Helsinki, estimated by analysts to be worth around $300 million.

The world's biggest cruise liner, the 311-m (1,035-foot) Voyager of the Seas, will set sail this week from Finland to the United States. The $500 million vessel is the first of three sister ships ordered by cruise operator Royal Caribbean from Masa-Yards in the western Finland city of Turku. The ship will leave Turku on Saturday for a three-week passage across the Atlantic to Miami, from where it will sail on its maiden commercial cruise on November 21. "We are eager to get this baby to Miami and get as many passengers on board as possible," Royal Caribbean representative Magnus Granholm told reporters on a tour of the luxurious ship. The 137,000-ton floating hotel will be able to carry around 3,000 passengers and 1,800 crew in over 2,000 cabins spread over 15 decks.

The Finnish state plans to join the bidding for Masa-Yards, the Finnish shipyards of Anglo-Norwegian engineering firm Kvaerner, according to news reports. Officials said that the state plans to invest some tens of millions of markka into the company and to secure a seat on its board to safeguard its interests in guaranteeing orders. Poland's Gdynia shipyard and a group led by Masa-Yards Chief Executive Martin Saarikangas are said to be making a joint bid for the two yards in Turku and Helsinki, estimated by analysts to be worth around $300 million.