Hegemann applies for guarantees

German shipbuilding group Hegemann has applied for state guarantees of Euro 9m ($12.6m) to secure the financing of an order. A spokesman for the finance ministry of Mecklenburg-Western Pomerania said that the committee in charge had already discussed additional state help for the shipbuilder but had deferred a decision. Bremen-based Hegemann group owns two shipyards in the state, Volkswerft Stralsund and Peene Werft. The spokesman said that Hegemann had asked the government to assume part of the risk that the ordering owner would not be able to pay the full purchase price. He did not reveal for which order the guarantees were needed.

German yards are struggling with a lack of newbuilding orders and uncertainty over funding by owners. Recently, Wadan Yards, which is also based in Mecklenburg-Western Pomerania, filed for insolvency.

However, Volkswerft Stralsund recently received an order for three large river cruise ships and an option for another three from Munich-based group Premicon AG with a combined value of ?120m ($167.6m). Spokesman Harald Piper said the newbuildings are scheduled for delivery between 2010 and 2012. The government in Schwerin has already granted Hegemann guarantees amounting to ?309m for loans needed for the pre-financing of newbuilding orders, the spokesman said.

Hegemann group is one of the leading German shipbuilders. Besides Volkswerft Stralsund and Peene Werft it also owns Rolandwerft, based in Berne in Lower Saxony. In 2008, the group built 21 newbuildings totalling 366,000 gt at its three sites.