Genting Hong Kong buys three shipyards in Germany

Genting Hong Kong has announced it has entered into a sales and purchase agreement with three German shipyards for €230.6 million (US$250.8 million) in order to expand its cruise fleet, according to a filing to the Hong Kong Stock Exchange.

Genting Hong Kong Ltd said it is purchasing three shipyards in Wismar, Warnemünde and Stralsund from Nordic Yard, and is expected to be funded by internal resources of the group.

“The rapid growth of the world cruise industry, especially in China, has led to global cruise ship orders reaching an all-time high. As a consequence, the Group faces the potential risk of being unable to obtain sufficient cruise ship building slots at acceptable prices to implement its planned 10 year cruise ship fleet strategy for its three cruise brands, Crystal Cruises, Dream Cruises and Star Cruises,” said Genting HK in the announcement.

“In order to address this risk, it is strategic that the Group acquire its own cruise shipbuilding yards to build its cruise fleet, freeing management to focus on design, planning and deployment of its planned cruise ship fleet.”

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