Finland Times

 

Finland and Meyer Werft have signed an agreement with the shipyard’s owner STX Europe AS regarding the purchase of STX Finland Oy’s entire share capital, read a statement of the Ministry of Employment and the Economy.

 

Meyer with 70 per cent ownership is set to shoulder the main responsibility of running the shipyard’s operations. The state’s ownership through the government-owned investment company Finnish Industry Investment (FII) will be 30 per cent.

 

“I am very pleased that the prolonged process is now approaching an elegant end. A greatly respected industrial partner with a long tradition in the field is now working at full speed to bring its expertise to help in further developing the Turku shipyard,” said Minister of Economic Affairs Jan Vapaavuori.

 

The government, however, did not disclose the exact cost of the deal but said the current struggling situation of the company was reflected in its valuation and subsequently in the final purchase price.

 

Minister of Economic Affairs, Jan Vapaavuori and Meyer Werft Jan Meyer (left) at a press conference after the deal on Turku Shipyard on Monday. Photo Lehtikuva.

The government said the FII will adhere to its normal investment policy and criteria taking into account that it only acts as a co-investor in a minority role. The government investment company has the possibility of seeking an exit at a later stage in line with its normal practice.

 

The report of the purchase also came with the news that the shipyard has received orders to build two cruise ships for the German TUI Cruises to be delivered in 2016 and 2017.

 

The estimated cost of the orders is almost 1 billion euros and it will help to create a direct employment effect of at least 12,000 man-years. The orders also envisage two optional vessels and, if realised, the total cost could rise to the tune of 2 billion euros.

 

The government will also be involved in development of the shipyard by readying a 10 million euro grant as innovation aid for the new TUI Cruises vessels.

 

“Co-operation between the state and Meyer as well as the confirmed new cruise vessel orders shows that the knowhow in Turku with its supplier network is attractive to business partners internationally. The achieved solution will help in further development of the yard’s operations that have a long historic tradition and unique knowledge,” remarked Vapaavuori in the statement.

 

The transaction will be closed and the shipyard’s ownership transferred once the German competition authorities complete their merger-control review and final decisions regarding construction financing are obtained from the commercial banks concerned.