Lürssen and German Naval Yards Kiel are to form a joint company, led by the former, with the objective of improving the structure of the German shipbuilding industry to bolster its efficiency and sustainability. This week, the two shareholding families successfully laid the foundation for a definitive contractual agreement for the joint company, although the proposed combination remains subject to approval by the relevant merger control authorities.
The combination aims to establish industrial structures that guarantee reliable domestic availability and an efficient cost structure which in addition to the construction of highly innovative and technologically advanced naval vessels, includes the functional integrity of such vessels over their entire life cycle. The recent classification of the entire naval shipbuilding industry as German “key technology” by the German government, in the context of the revised “Strategy paper for the strengthening of the German security and defence industry”, supports such a request. The strengthening of the domestic naval shipbuilding industry through this combined entity meets these objectives and further strengthens the ability of Northern German shipyards and the domestic maritime supply industry to successfully compete on a global scale.
A strategic move
The German Government, represented by their Maritime Coordinator Norbert Brackmann MdB, was involved in the process from the early stages on where he accompanied and supported the process substantially with his expertise. Iskandar Safa, CEO of Privinvest Holding SAL, the ultimate parent company of German Naval Yards Kiel GmbH, said: “The consolidation in Germany is long overdue. Germany has first-class naval yards and excellent technologies. However, our customers require partners with sufficient scale and capabilities to fulfil large-scale orders of strategic importance. Our customers can be better served if domestic players join forces. We have made an important step into the right direction today. We look forward to working with our partner Lürssen.”
Friedrich Lürßen, shareholder of the Lürssen Group, added. “We are convinced that the consolidation of our naval shipyards has significant strategic merit and will strengthen their competitiveness in the future. We are pursuing this step with the objective to provide a more comprehensive and efficient offering for the supply and maintenance of high-quality naval units to the national customer. We stand ready for this with our team of motivated and highly qualified employees. With this strategic project, we also want to actively contribute to mitigating the effects of the current corona pandemic and to safeguard the national industry’s jobs and technological capabilities in the long-term. We look forward to working with our new partner and are confident to take the required next steps to successfully implement our consolidation strategy.”