FSG take-over necessary says yard

FSG Managing Directors Peter Sierk and newly appointed Frank Bywater welcomed the move to acquire both the yard and “all its employees” as “a necessary and just step in the right direction”. They said it would enable FSG to further consolidate and also to strengthen its position on the offshore market. It entered that market successfully three years ago while still leading the world in the design and construction of ro-ro ships.

Mr Sierk and Mr Bywater did not explain what was meant by “necessary”. German reports said however that FSG, which has complex orders in hand up to late 2016, has of late been involved in talks about liquidity with banks, authorities and customers to secure finance for its busy portfolio. The reports said the Siem take-over now would end speculation about a possible insolvency.

The IG Metall trade union which represents many of the yard’s approximately 750 employees also appeared to touch on this when it referred without elaboration to “the uncertainties of the past few weeks” for FSG personnel. It said employees were “relieved” and welcomed the Siem take-over.

The ownership change is expected to be completed by the end of October and FSG said it was “subject to certain conditions” which have not yet been detailed.

Five complex newbuilds are currently being built at FSG, They include two sophisticated well-intervention newbuilds for delivery in 2016 to Siem Offshore. Priced at €140 million apiece they are based on a SALT 301 flexible offshore vessel design and will be 158m long.

It appears logical to assume that with Siem, which already has 145 ships, as its owner, further orders will now be placed with FSG.