STX France, unions to oppose Fincantieri

Genova - French unions have already raised roadblocks at the entrance of Fincantieri in STX France. The Italian shipbuilding group is the sole bidder for the purchase of the large shipyard, located in Saint Nazaire, but labour representatives are concerned and are presenting other options to an Italian takeover: “The French government should nationalize the firm,” exhorted French trade union Force Ouvrière (FO). Paris holds a 33.3% stake in STX, while the Korean company has put the remainder of the shares on sale. Workers would prefer action to “save the last great French shipyard,” reported French newspapers. Another trade union is concerned that an agreement to develop the cruise industry in China, between Fincantieri and China State Shipbuilding Corporation (CSSC), is likely to favour “our direct competitor.” And also in the spotlight is the fear on the part of unions that workers could be hit by a possible company streamlining.

French unions are on the defensive, while the government remains silent, awaiting disclosure of the details of the shipyard purchase offer which will be made public on 3 January. The facility at Saint Nazaire boasts a naval construction area 900 metres long and 70 wide, able to build two Oasis-class ships, among the largest cruise ships in the world, simultaneously.

In addition, recently there’s been an upgrading of equipment: for the construction of “Harmony of the Seas” a new gantry crane with a record 1,400 tons lifting capacity was purchased. Thanks to this greater lifting capacity, the shipyard is now able to prefabricate larger hull sections on land, with consequent savings both in construction costs and time. STX France also boasts another huge basin (450 metres), which serves various functions, such as maintenance - and cleaning of the hulls - of large cruise ships. Meanwhile, there are ongoing plans to further upgrade the facility, the next step being an expansion of the pre-assembly area by an additional 130 metres. For these reasons, the Saint Nazaire facility is currently the only one positioned to make the next leap forward in the trend towards ever larger ships. Its acquisition would endow Fincantieri with equipment and infrastructure that Italy’s shipbuilding group is currently lacking; its shipyard in Monfalcone, near Trieste, for instance, is the only site capable of building ships of over 150,000 tonnes, but it does not have at its disposal in the Adriatic a dry dock of more than 300m in length.

Meanwhile Fincantieri has postponed till 17:30 (Singapore Time) of next 12 January, the deadline for its takeover bid of Vard shipyard shares, launched last 13 November, that had been initially scheduled for yesterday. The offer, launched through its subsidiary Fincantieri Oil & Gas, aims to take control of over 90% in Vard for the purpose of delisting the firm (it is listed on the Singapore Stock Exchange) by acquiring 44.37% of remaining shares not already held directly or indirectly; the value of the transaction, if accepted in total, is about €82 million.