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Genting HK completes €230m purchase of three German shipyards; multi-ship order imminent

Tan Sri Lim, chairman of Genting HK due to sign a new multi-ship order with Lloyd Weft on May 10
Genting Hong Kong has completed the acquisition of three German shipyards in Wismar, Warnemunde and Stralsund, following the signing of the sale and purchase agreement on March 1, 2016.

The three German yards are acquired by Genting HK at a consideration of €230.6m ($259.9m). The newly purchased yards, together with Genting HK’s previous acquisition of Lloyd Werft shipyard in Bremerhaven, will be managed as the Lloyd Werft Group.

The latest acquisition deal will give Genting HK the capacity to build a global cruise fleet for its three brands – Crystal Cruises, Dream Cruises, and Star Cruises, the company believes.

‘We are pleased with the completion of the transaction as ownership of the yards provides certainty that we can build a fleet of high quality cruise ships at a pace dictated by our growth rather than constrained by supply as cruise ship orderbook continues to reach all-time highs,’ commented Tan Sri Lim Kok Thay, chairman and ceo of Genting HK.

‘We will begin by building four Crystal river ships scheduled for delivery in 2017 and Crystal Endeavor, the first purpose-built polar class expedition megayacht, for delivery in 2018.

‘Our goal is to grow the yard output to two mega cruise ships and one mid-size cruise ship or megayacht a year within a decade, not only for our own fleet but also for other cruise lines and yacht owners,’ Lim said. To help achieve this goal, Genting HK will invest about €100m in thin steel fabrication facilities, cabin module factory and other improvements, at the three German yards.

Rudiger Pallentin, managing director of Lloyd Werft, revealed: ‘Tan Sri Lim, chairman of Genting HK will be signing a significant new multi-ship order with the Lloyd Werft Group on May 10 and these orders will help support the German and European shipbuilding industrial sector and employment during the current shipbuilding downturn.’