Genting HK spends another RM440mil, aims to be most modern shipbuilder

Ambitious plan: The Stralsund shipyard in Germany. MV Werften is the merger of Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany. Managed in Wismar, it will focus on building large new ships.

PETALING JAYA: Leading global leisure and hospitality company Genting Hong Kong Ltd, which has already paid 230.6 million euros (RM1.01bil) for the acquisition of three shipyards in Germany, renamed MV Werften, is putting in a further investment of more than 100 million euros (RM440mil) to focus on making it the most modern shipbuilding group with an output of two Neo-Panamax and one Panamax cruise ships a year.

MV Werften is the merger of Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany. Managed in Wismar, it will focus on building large new ships.

Separately, Genting Hong Kong also acquired Lloyd Werft last September, which is located in Bremerhaven and is focused on the business repairs, conversion and building of mega yachts.

Genting Hong Kong first bought a 70% stake in Lloyd Werft for some 17.5 million euros (RM77mil) and subsequently in January paid an additional 16.4 million euros (RM72.16mil) to exercise the option to buy the remaining 30% of the shipbuilder.

Thus, MV Werften together with the previously purchased Lloyd Werft shipyard in Bremerhaven, will enable the Genting group to optimise the strengths of each yard for design, fabrication, outfitting and final assembly using the two huge covered dry docks in Wismar and Warnemunde and one ship launching lift in Stralsund.

Genting Malaysia Bhd holds 16.87% of Genting Hong Kong. Meanwile, Genting Bhd owns 49.31% of Genting Malaysia and 52.89% of Genting Singapore Ltd

“To make MV Werften into one of the world’s most modern and efficient cruise shipyards, we will invest 100 million euros in a thin plate laser welding line, a cabin module factory, a new covered section block building hall, the modernisation of manufacturing control systems and new executive and employee offices and facilities,” Tan Sri Lim Kok Thay, the chairman and chief executive of the Genting Group, said in a statement yesterday.

Lim also announced Jarmo Laakso as the managing director of MV Werften.

Laakso has more than 35 years experience in building passenger ships, including the latest generation of mega cruise ships, including the Quantum of the Seas.

Laakso has a unique yard and owner perspective, as he had worked for Meyer Werft from 1998 to 2004 and for Royal Caribbean International from 2005 to 2015.

In a release, Genting Hong Kong said that MV Werften will deliver the first of four luxury Crystal River ships in 2017, the first of a series of 20,000 gross tonne Crystal Endeavor Class polar expedition yachts in 2018, and the first of a series of 201,000 gross tonne Star Cruises Global Class cruise ships by 2020.

The planned annual output of MV Werften will be stepped up in future years to eventually build two Neo-Panamax cruise ships of over 200,000 gross tonnes each and one Panamax cruise vessel.

MV Werften has docks, fabrication halls and painting shops which are all covered and, as a result, is able to produce cruise ships of the highest quality and workmanship, valued at more than 2.5 billion euros.

Lloyd Werft in Bremerhaven will continue to be led by its managing director Rudiger Pallentin, Dirk Petersjohann and Carsten Haake and focus its previous business on repair and conversion and with its recently established ‘Lloyd Werft Design Center’, to strengthen its ability to build megayachts.