Fayard may take over ships from bankrupt shipyard

“Yes of course is it possible for us to build them. And it goes without saying that we have already contacted the carriers in question and told them that we are ready if they need us”, Thomas Andersen, owner of Fayard, says when asked about the future of the  DFDS, Royal Arctic Line and Scandlines newbuildings “stranded” in Germany.

Photo: Foto: Carsten Andreasen

Fayard, formerly known as Fredericia Shipyard and one of the biggest yards in Europe following the relocation of the big Danish shipyard Lindoe, has the necessary capacity and know-how to finish one or more of the nine ships which DFDS, Royal Arctic Line and Scandlines have under construction at P+S Werften in German Stralsund. Wednesday, the German shipyard employing more than 1,700 people suspended payments as a result of lengthy financial problems.

“Of course we are aware of the situation in Stralsund and we have contacted the carriers to hear if the completion of the ships will take place elsewhere. We have finished ships from newbuilding yards before. It is in no way new for us and we have the necessary capacity and know-how to do it. Without anticipating events in Germany, it is definitely a very complex situation but shortly put; yes of course is it possible for us to build them. And it goes without saying that we have already contacted the carriers in question and told them that we are ready if they need us”, Thomas Andersen, owner and CEO of Fayard, says.

The Lindoe relocation

Last year, when Fayard relocated to Lindoe, the company did not just expand its capacity considerably; the new and far bigger facilities have also changed the competitive situation among the shipyards in the region. The three Lindoe dry docks have made it possible for Fayard to dock ships of up to 45 meters wide compared to only 32 meters in the old facilities. Furthermore, Fayard has marketed the biggest dock of them all to potential clients in order to test the possibilities of a profitable long term rent.

Lengthy German crisis

The future of the German shipyard group and the destiny of the approximately 1,700 employers in Stralsund and Wolgast are decided upon in the near future, German media reports. In spite of a comprehensive order book and a new management, the shipyards have been in a lengthy period of financial crisis and meetings with prominent Land government politicians and Federal Chancellor, Angela Merkel, on a massive public injection of capital have so far been futile which was also the case with an appeal to the European Commission in Brussels monitoring the EU state subsidy regulation. And obituaries over the shipyards and their 64-year-old histories are beginning to appear in German media on Thursday.

According to information given to ShippingWatch, completion of the ships in other shipyards is one of the scenarios in the involved companies. The ships are already much delayed.

At the moment, two ro-ro newbuildings to DFDS, a total of five especially designed ships for Royal Arctic Line and two new ferries for Scandlines are stranded with the German shipyards. On Wednesday, DFDS issued a stock exchange announcement in which it informed that the company expects the situation to be clarified within a few months.

On Thursday, the Royal Arctic Line board will convene. The order of five new ships, made in 2010, contains ships which are designed specifically for the purpose of arctic shipping and they are prototypes, is the biggest newbuilding order from the carrier. The production of all five ships is underway but they are at different phases of the process.  

Billions in state subsidy

The story of the German P+S Werften is part of a long and turbulent tale of shipyards and an industry which got into serious trouble following the reunification of Germany. In order to save the much inefficient East German shipyards, several shipyards received billions in state subsidies in the beginning of the 1990s as a process of industry modernisation despite massive protests in the EU from e.g. Denmark. The merger of shipyards in Stralsund and Wolgast by the owner, Bremer Hegemann-Gruppe has not been able to secure the shipyards’ competitiveness. After taking over the shipyard in Stralsund in 2007, and to the surprise of many in the industry, Hegemann chose to focus on newbuidings in direct competition with shipyards in Asia.

Danish vessels stranded in bankrupt shipyard  

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