STX France Terminates GNMTC Cruise Vessel Contract

STX France SA, a 66.66% owned subsidiary of STX Europe AS, has rescinded the contract with GNMTC (General National Maritime Transport Company) – the state owned Libyan shipping company – for the construction of a 140,000 GT cruise vessel for delivery end-2012. The reason for the rescission is the default of payment from GNMTC.

STX France is confident to be able to find a new buyer for the vessel. Due to insurance cover for such an incident, the rescission is expected to have limited impact on the financial results of STX France.

STX France SA is a subsidiary of STX Europe AS, an international shipbuilding group which aims to be the leading builder of cruise vessels, ferries and other specialized vessels. STX Europe AS is also the majority shareholder in STX OSV Holdings Limited listed on the Singapore Exchange (SGX) – specializing in the construction of advanced offshore and specialized vessels.The group has a strong position in terms of developing state-of-the-art concepts, technology, processes and products for customers around the world. STX Europe comprises 6 shipyards in Finland, France and Norway in addition to 9 shipyards belonging to STX OSV Holdings Limited. STX Europe Group has approximately 15 000 employees.

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Source: STXeurope, June 23, 2011.