STX and City of Rauma Ink Takeover Agreement (Finland)
- Business & Finance
The City of Rauma and STX Finland Oy have signed an agreement by which the City purchases the Rauma Shipyard’s lands, buildings, structures and movable property from STX Finland Oy at the total price of EUR 18.1 million.
In connection with the acquisition, the parties also made a two-year co-operation agreement, with the help of which the shipyard area will be developed further in collaboration between the parties. It will also ensure that there will be co-operation between actors coming to the Rauma shipyard area and the Turku Shipyard.
STX Finland Oy will remain a leaseholder to part of the area until the end of June 2014 to finalise the two ship projects under construction.
Mayor of Rauma Kari Koski is very satisfied that the long negotiation process could be successfully finalised. “By purchasing the shipyard area, the City will be able to create a competitive industrial park environment for heavy engineering industry securing operating potential for growing maritime industry companies. This way the City can make a positive contribution to the employment situation within the region,” says Mayor Koski.
STX Finland has been actively seeking solutions for saving the Finnish shipyard industry. In September 2013, the company launched a major restructuring aimed at safeguarding the operating potential of the company and, by extension, the entire maritime industry in Finland.
As part of the restructuring, the company adjusted its capacity to meet the expected demand, and decided to discontinue the operation of the Rauma shipyard. The City of Rauma and STX Finland launched the negotiations with an aim to agree on the sale of the shipyard area soon after the company had taken the decision to close down the operations in mid-September.
“We are pleased with the agreement made with the City of Rauma, which is a positive solution in several respects. The deal will promote the restructuring process the company is undergoing, thus strengthening STX Finland’s financial status for its part. The co-operation agreement will give us an opportunity to support the development of maritime industry in Rauma and in Finland, and to positively impact employment in the area,” says Jari Anttila, Deputy CEO of STX Finland Oy.
In collaboration with its partners, the City of Rauma aims to establish a Seaside Industry Park, an industrial park for heavy engineering industry, in the shipyard area. The companies locating themselves in the industry park will gain competitive advantage from the proximity to each other and the robust seaside infrastructure, as well as close collaboration with research institutes.
The City Board of Rauma convened an extraordinary meeting in the morning today, and approved both the acquisition and the co-operation agreement. STX Finland’s Board or Directors accepted the deal earlier on Monday evening.
On the City of Rauma’s side, the deal will be realised by a legally valid decision taken by the City Board. The matter will be on the City Board’s agenda next Monday 27 January 2014. The City will not need external funding for the acquisition, but the funding can be arranged by reducing the existing deposits and using the City’s cash reserves.
STX, January 22, 2014