GGRAsia – Genting HK to invest US$111 mln in German shipyards

Genting HK to invest US$111 mln in German shipyards

Jul 12, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck, World

Genting Hong Kong Ltd, an operator of casino cruise ships and a joint venture casino operator in the Philippines, said it will invest more than EUR100 million (US$110.9 million) to upgrade its recently-acquired shipyards in Germany.

Three shipyards acquired by Genting Hong Kong in April will be managed under the brand MV Werften and focus on building large ships. Lloyd Werft Bremerhaven AG, acquired last year, will focus on repairs, conversion and building of mega yachts, Genting Hong Kong said in a press release.

“We will invest in a thin plate laser welding line, a cabin module factory, a new covered section block building hall, the modernisation of manufacturing control systems and new executive and employee offices and facilities,” said Genting Hong Kong chairman Lim Kok Thay in a statement.

Genting Hong Kong had acquired the three shipyards in the German state of Mecklenburg-Vorpommern for EUR230.6 million. The Hong Kong-listed firm acquired 70 percent of Lloyd Werft in 2015 for a total consideration of EUR17.5 million.

The company said it expects that the new assets would strengthen its global casino cruise ship fleet capabilities over the next decade.

Genting Hong Kong – part of Malaysia-based Genting Group – operates cruise ships under three brands: Star Cruises, Dream Cruises and Crystal Cruises.

In 2015, Genting Hong Kong acquired U.S.-based Crystal Cruises and its subsidiaries for a total consideration of US$550 million. The firm launched – in November that year – Dream Cruises, a new cruise line “conceived in and built for Asia”.

In its latest annual results the firm said that it will position Crystal Cruises for the ultra-luxury segment; Dream Cruises for the premium segment; and Star Cruises for the contemporary segment.

Genting Hong Kong said its revenue from cruise and cruise-related activities increased 23 percent year-on-year to US$652.8 million in 2015.

The company in April signed a cooperation agreement with China Merchants Group to develop an under-construction international cruise ship terminal in Shenzhen, in mainland China, as a home port.