The Latest Lifeline for Shipyards

London - Hardly a ship is delivered these days without being designated an “eco” design. It’s been applied to Meyer Werft’s latest cruise ship, Anthem of the Seas, to Ferus Smit’s latest general/project cargo ship, Nordana Sky, and to Samsung Heavy Industries’ latest tankers. Eco ships are the latest lifeline for struggling shipyards. After the 2008 financial crisis, many yards initially looked to the offshore industry for salvation. It’s a strategy that’s been adopted globally and continues to be successful. Zamakona Yards in Spain’s recent delivery of field support vessel Ocean Falcon is one example. Sinopacific of China’s new SPA150 AHTS is another, as is Kleven Verft of Norway’s latest offshore construction vessel, Olympic Bibby. Mergers and takeovers have characterized the industry since 2008, and this too is a continuing trend. Norway’s Siem Industries took over German shipyard Flensburger Schiffbau-Gesellschaft (FSG) last year. This year Meyer Werft secured its hold of Finland’s Turku yard by acquiring the final 30 percent of the company from the Finnish government. Some yards continue to suffer alone. In China, it has been predicted that the number of shipyards will drop from 100 to just 30 over the next few years. Orders at Chinese shipyards fell 77 percent in the first quarter of this year. Even the world’s largest yards are not immune to the current market lows. Hyundai Heavy Industries posted a loss in the first quarter of 2015 due in part to cost overruns and a slump in newbuilding orders.

(Source: Maritime-Executive)