German yards suffer

According to the German Shipbuilders’ Association (Verband für Schiffbau und Meerestechnik e.V.) the domestic shipbuilding industry signed newbuilding contracts for 46 vessels in 2008, it?s the lowest order intake since 2001, Lloyd?s List reports. In 2007, the industry received orders for 79 vessels. 29 vessels were cancelled in 2008, while financing for further 29 vessels is at risk because bank guaranties of EUR 900 million still are missing. The majority of cancelled vessels were container carriers.

The German container carrier construction yards consider building other types of vessels as well, like product carriers, anchor handling tugs and supply vessels for the offshore industry, to make up for the declining order intake.

Since the beginning of the economic downturn, several yards have been declared insolvent. The Lindenau Werft in Kiel finally received a EUR 28 million loan from HSH Nordbank to secure the production and has an order book worth EUR 225 million. The yard is also said to be debt-free.