New yard alliance off to good start

Genting Hong Kong announced last week it had bought the eastern German Baltic facilities of troubled, Russian-owned Nordic Yards in Wismar, Warnemünde and Stralsund for €230.6 million.

Genting Chairman Tan Sri Lim Kok Thay said it was a logical step and strategically important “that we acquire shipyards that can build our cruise ships on a timely basis and in a more cost effective manner” than others. Ownership would “free the company from delivery timing and pricing uncertainties” at a time when order books are full, he added.

Nordic Yards will now become part of a new German shipbuilding alliance called the Lloyd Werft Group, employing 1,700 and headed by Lloyd Werft, which Genting acquired last year. Lloyd Werft MD Rüdiger Pallentin said it would “look more intently to the east” for the construction of hulls instead of having them built elsewhere – a reference to countries like Poland.

It was announced last year that Genting was ordering three ocean-going luxury cruise ships and two luxury inland cruise ships at Lloyd Werft. Genting subsidiary Crystal Cruises later added two more inland ships to the order. All are for service from 2017.

However Lloyd Werft has now said ten newbuildings are on order. Pallentin told The Motorship “the order book has increased and there will be work for the next 10 years”.

He did not elaborate. However Lloyd Werft, which last built a cruise ship in 2005, has already said the large number of orders “poses particular challenges” for the new yard group. There are as yet no details of the ships or information on where or when they will be built. The latest yard acquisitions indicate however that this welcome work will be spread around all four facilities and get underway sooner rather than later.