Genting Hong Kong Buys Nordic Yards’ Three Shipyards
- Business & Finance
Genting Hong Kong, a global leisure, entertainment and hospitality company, has acquired Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany for the consideration of EUR 230.6 million (USD 250 million).
The company said that 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, Dream Cruises, and Star Cruises.
“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.
In addition, the company said that the ownership of the shipyards will free it from both the delivery timing and pricing uncertainties associated with the cruise ship order book cycle, and allow management to focus on the strategic planning, design and deployment of its planned cruise ships among its three brands.
The acquired yards are capable of building cruise ships larger than the largest cruise ships currently afloat and with further investment, they will have a steel fabrication capacity of about 150,000 tons a year.
“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,” said Tan Sri Lim Kok Thay.