Fosen Yard is taking over a German shipyard
Published 18.10.2018 // 11:12 CET
“Now we have secured control over the entire value chain,” says Fosen manager Anders Straumsheim.
Three years ago, the shipyard Noryards Fosen AS went bankrupt because of the offshore shipping company BOA canceled a new building agreement. A short month after the bankruptcy, the shipyard activity could resume under the name of Fosen Yard, with local forces in the back and a contract of over half a billion kroner (NOK) from Hurtigruten. And now they expand. To Germany. Fosen Yard buys 51 percent of Nordseewerke and gets the old owners on the team. – Now the deal is in box. We have been with a notary public in Hamburg and signed the papers, says Fosen manager Anders Straumsheim.
Had 5000 employees
He is in Emden on Tuesday afternoon, on his way in to take a look at the yard he is now in control of. – This has been very fast. Now we have to take a closer look at the state of the kingdom. Nordseewerke has entered into several owner constellations for the past two hundred years. On the shipyard west of Bremen, on the border with the Netherlands, 620 boats have been built – from cruise ships to military submarines. At most, the yard had 5000 employees.
Hull building in Germany
The way most shipyards build ships is that they build the hull at foreign yards. Steelwork is labor intensive and it is cheaper to do this abroad, where the hourly payment to the employees is lower. Then the hull is towed to Norway, where the ship is outfitted. It is precisely the hull building Fosen Yard will now do in Germany. The yard has not delivered a major new building for several years. They will now do something about it. “Now we are in control of the entire value chain. It is always risky to order a hull from a third party. Now we want control of the whole process, which will give us the opportunity to win contracts we otherwise had not reached”, Straumsheim says. “There are also some advantages of being in Germany, like other financing options, construction loans etc.” says Straumsheim.