STX Finland

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STX Finland Oy
Industry Shipbuilding
Founded 1989
Headquarters Turku, Finland.
Products cruise ships, ferries, arctic vessels
Parent STX Group
STX Europe
Website www.stxeurope.com
MS Freedom of the Seas under construction at Aker Yards in Turku in 2006.

STX Finland Oy, formerly Aker Yards Oy, is a Finnish shipbuilding company operating two shipyards in Finland, in Turku and Rauma, employing some 2,500 people. It is part of STX Europe, a group of international shipbuilding companies owned by the South Korean STX Corporation.

In September 2013, STX Finland announced that the shipyard in Rauma would be closed in June 2014.

History

STX Finland Oy is a descendant of different shipyard companies. Wärtsilä operated the shipyards of Helsinki and Turku since the 1930s. Wärtsilä Marine went bankrupt in 1989 after merging with Valmet shipyards. Masa-Yards was established by Martin Saarikangas with financing from the shipping companies to finish the ships under construction, eventually taking over the operations of Wärtsilä's former shipyards. In the mid-90s Kvaerner purchased Masa-Yards and Kvaerner Masa-Yards was born. In 1991 the shipbuilding businesses of Hollming Oy of Rauma and Rauma-Repola of Rauma were merged to form Finnyards.[1] This company was purchased by Kvaerner and became Aker Finnyards. In January 2005 Kvaerner Masa-Yards and Aker Finnyards merged to form the "new" Aker Finnyards Oy. The name of the company was changed to Aker Yards Oy on 7 June 2006, and to STX Finland Cruise Oy on 23 November 2008. Since September 2009 the company has been named STX Finland Oy.

STX Finland and its predecessors have built many luxurious cruise ships, including the very first modern purpose-built cruise ship, the Song of Norway. Recent cruise ships built by the company include the two Oasis-class vessels, Oasis of the Seas (2009) and Allure of the Seas (2010) which currently hold the record for largest cruise ships in the world. STX Europe is also responsible for the largest cruiseferry in the world, Color Line's Color Fantasy, and her sister ship Color Magic that entered service in late 2007.

The company is also the principal yard for the Finnish Navy and the world's leading builder of icebreakers. It has a 50% share in Arctech Helsinki Shipyard, a joint venture with United Shipbuilding Corporation.[2]

2012–2013 funding crisis

In December 2012, STX Finland lost an order for a third Oasis-class cruise ship, worth nearly 1 billion euro, to STX France. For several months prior to this, the shipbuilding company, the Cabinet Committee on Economic Policy and the Minister of Economic Affairs of Finland had been in talks for financing the newbuilding, and the government officials were expected to present Royal Caribbean with an attractive financing package to stimulate economic growth and ensure employment as the order would have provided work for the Finnish Maritime Cluster for 12,000 man-years.[3][4] However, on 23 November it was reported that the Cabinet Committee had refused to finance the loan for the order.[5] Through December, STX Finland and the potential order for the third Oasis-class vessel was in the Finnish news almost daily while the Government debated whether or not grant a 50 million euro loan to the shipyard. One of the reasons why the loan was not readily given was the poor financial situation of the parent company, STX Corporation. On 21 December, the Government of Finland again refused to loan money to the shipyard, but offered a 28.3 million euro "innovation fund" if the ship, dubbed Sanctuary in the news, is ordered.[6] This was not enough, and on 27 December Royal Caribbean ordered the third Oasis-class cruise ship from the government-backed French shipbuilding company.[7]

In addition, the financing package for the two cruise ships ordered by TUI Cruises, of which the first is already in production, was tied to the funding of the third Oasis-class cruise ship. Since the order was awarded to the French shipyard, STX Finland had to apply for a separate financing from the government-owned export credit company Finnvera. However, on 12 January 2013 it was reported that it would not be granted due to the poor financial situation of the STX Corporation. If funding is not obtained, there is a danger that the shipyard, which has no other ships in its orderbook, will be closed.[8][9]

In April 2013, it was reported that STX could be facing bankruptcy after it failed to sell its affiliate, STX Pan Ocean, and the company's shares dropped 15% in the Seoul stock exchange.[10]

Closing of the shipyard in Rauma

On 16 September 2013, STX Finland announced that the shipyard in Rauma, which has not been awarded newbuilding orders for several years, would close its doors in the end of June 2014. According to the company, which had not made profit for six consencutive years, this was the only way to guarantee the continuation of the shipbuilding industry in Finland. When the shipyard is closed, about 600 people will lose their jobs.[11]

On 10 October 2013, it was reported that the state-run Korea Development Bank (KDB), the key creditor of STX, is looking to sell the European shipyards. Among them are STX Finland's shipyards in Turku and Rauma, and 50% of the joint enterprise Arctech Helsinki Shipyard.[12]

On 22 January 2014, the city of Rauma purchased the shipyard from STX Finland for 18.1 million euro. A potential use for the site is a marine-related business park.[13] However, it is unlikely shipbuilding will continue in Rauma.

Delivered Craft

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Turku

MS Allure of the Seas (left) and MS Oasis of the Seas (right) under construction at the Perno shipyard in Turku

Rauma

Helsinki

On order

Turku

  • Mein Schiff 3 and Mein Schiff 4 for TUI Cruises; see funding issues above

Rauma

See also

References

  1. ↑ (Finnish) Rauman seudun teollistuminen
  2. ↑ "Arctech Helsinki Shipyard To Build Sovcomflot Icebreaker Supply Vessels". Retrieved 2010-12-18. 
  3. ↑ Finnish Authorities Discussing Financing Third Oasis-Class Vessel? Cruise Industry News, 3 October 2012. Retrieved on 2012-10-05.
  4. ↑ RCCL said to be close to order third Oasis class ship from STX Finland. Cruise Business Review, 3 October 2012. Retrieved on 2012-10-05.
  5. ↑ Saarikangas laivatilauksesta: Vireillä on jotakin, tilanne ei ole toivoton. YLE, 26 November 2012. Retrieved on 2012-11-28.
  6. ↑ Valtio tyrmäsi Turun telakan hakeman lainan. Taloussanomat, 21 December 2012. Retrieved on 2012-12-21.
  7. ↑ Royal Caribbean Orders Third Oasis-Class Ship from STX France. Cruise Industry News, 27 December 2012. Retrieved on 2012-12-28.
  8. ↑ HS: Turun telakka pahoissa vaikeuksissa - voi menettää kaksi risteilijätilausta. Ilta-Sanomat, 12 January 2013. Retrieved on 2013-01-12.
  9. ↑ STX:n Anttila: TUI:n laivasta 10 prosenttia valmiina, rahoitus alkaa 30 prosentissa. Turun Sanomat, 12 January 2013. Retrieved on 2013-01-12.
  10. ↑ Daily: STX shipbuilder facing bankruptcy. YLE, 3 April 2013. Retrieved on 2013-04-03.
  11. ↑ Musta maanantai: STX:n Rauman telakka lopetetaan. YLE, 16 September 2013. Retrieved on 2013-09-28.
  12. ↑ S. Korea bank 'seeks sale of STX Europe'. Breitbait, 10 October 2013. Retrieved on 2013-10-10.
  13. ↑ Rauman kaupunki ostaa STX:n telakka-alueen. Ilta-Sanomat, 22 January 2014. Retrieved on 2014-01-22.

External links

Aker Group
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See also: Category:Aker Group
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