ThyssenKrupp, HDW to hold on to all shipyards

ThyssenKrupp AG said all shipyard sites would be kept as part of its merger with One Equity Partners (OEP) unit Howaldtswerke-Deutsche Werft AG (HDW), which is expected to be contractually sealed by the end of September, and finally completed by the end of December.

‘Under the new structure all existing locations will be retained,’ said Olaf Berlien, CEO of ThyssenKrupp Technologies AG. Based on the existing key activities of the individual shipyards, the new group will concentrate on four product areas: submarines, naval ships, civilian ships and repairs. The locations Hamburg, Emden and Kiel will each be developed into centres of excellence with clearly defined product responsibility. This will safeguard the locations long-term and create a balanced development perspective.

The Hamburg location will concentrate on naval surface ships and mega yachts as well as the repair business. Emden will be the location for naval and merchant ships, while the submarine activities will be concentrated in Kiel.

A spokeswoman added the foreign subsidiaries Kockums AB in Sweden, and Hellenic Shipyards in Greece will also be kept. OEP will receive $290 million in cash and a 25% stake in the new shipbuilding group controlled by ThyssenKrupp. The German steel conglomerate will hold 75%. The new entity will have 9,300 workers, and annual sales of $2.6 billion.