Genting Hong Kong Acquires Nordic Yards
Cruise ship operator Genting Hong Kong Ltd is buying three shipyards in Wismar, Warnemünde and Stralsund respectively owned by German shipbuilding company Nordic Yards for $358 million to further enable its presence in the sector.
The purchase from Nordic Yard is expected to be funded by internal resources of the group, it said in a filing to the Hong Kong Stock Exchange.
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, Star and Dream, said Genting in a statement.
“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.
Tan added: “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.”
Genting Hong Kong said ownership of the shipyards will free it from both the delivery timing and pricing uncertainties associated with the cruise ship order book cycle, which is at a historic high, and allows management to focus on the strategic planning, design and deployment of its planned cruise ships among its three brands.
It noted that the Wismar shipyard’s dry dock measures 340m long and 67m wide, while the Warnemunde shipyard’s dry dock measures 320m long and 54m wide, and both are capable of building cruise ships larger than the largest cruise ships currently afloat.
The Stralsund shipyard, meanwhile, has a ship lift to launch cruise ships and mega yachts up to 270m long.
“These shipyards, with further investment, will have a steel fabrication capacity of about 150,000 tonnes a year, sufficient to build a number of cruise ships and a mega yacht per year,” said Genting Hong Kong.
The company operates cruises under the Crystal Cruises, Dream Cruises and Star Cruises brands.
Last year Genting Hong Kong had bought a 70% stake in German ship builder Llyod Werft, which it raised to 100% earlier in 2016.
