Crystal Cruises’ Parent Genting Buy Three Shipyards, Creates Lloyd Werft Group

by Jason Leppert
Last updated: 10:00 AM ET, Tue April 26, 2016

Photo courtesy of Genting Hong Kong

The parent company of Crystal Cruises, Genting Hong Kong, has finalized the acquisition of Nordic Yards' three shipbuilding facilities, forming the Lloyd Werft Group in the process. The shipyards are located in Wismar, Warnemunde and Stralsund, Germany - where it will construct ships for its Crystal Cruises, Dream Cruises and Star Cruises brands - and amount to a deal worth 230.6 million euros.

"We are pleased with the completion of the transaction, as ownership of the yards provides certainty that we can build a fleet of high quality cruise ships at a pace dictated by our growth rather than constrained by supply as cruise ship order book continues to reach all-time highs, with orders placed as far out as 2026, ten years from now," said Tan Sri Lim Kok Thay, Chairman and Chief Executive Officer, Genting Hong Kong. "We will begin by building four Crystal river ships scheduled for delivery in 2017 and Crystal Endeavor, the first purpose-built polar class expedition megayacht, for delivery in 2018. Our goal is to grow the yard output to two Mega cruise ships and one mid-size cruise ship or megayacht a year within a decade, not only for our own fleet but also for other cruise lines and yacht owners."

The trio of shipyard acquisitions are in addition to the former purchase of the Lloyd Werft facility in Bremerhaven, now collectively making up the newly formed group which allows strategic fleet building at a time when global shipyards are in otherwise high demand. The company can ensure dedicated resources and scheduling to its new ships accordingly.

Facility highlights include all-weather covered drydocks in Wismar and Warnemunde and a ship-launching lift in Stralsund. Each of the two former locations can construct vessels up to 200,000 gross tons each, and the latter can build mega-yachts up to about 50,000 gross tons.

Plus, Genting plans to invest an additional 100 million euros towards thin steel fabrication facilities, a cabin module factory and other enhancements. Together this will give the company the ability to produce two mega cruise ships and one mid-size cruise ship or mega-yacht each year, and the Lloyd Werft Group will be one of the two biggest cruise ship construction groups in Germany and one of four in Europe and worldwide.

"Tan Sri Lim, Chairman of Genting Hong Kong will be signing a significant new multi-ship order with the Lloyd Werft Group on 10th May and these orders will help support the German and European shipbuilding industrial sector and employment during the current shipbuilding downturn," said Rüdiger Pallentin, managing director of Lloyd Werft. "To support the new shipbuilding program, Mr. Hui Lim, Executive Director - Chairman's Office and Chief Information Officer of Genting Hong Kong will open the new 'Lloyd Werft Design Center' in Bremerhaven on 9th May, which will house more than 250 designers, and Edie Rodriguez, President and CEO of Crystal Cruises, will officiate at the steel cutting ceremony for the Crystal river ships also on 9th May."

Also on the timeline for new ships to be built for Crystal Cruises are three Exclusive-class cruise ships and their Crystal Residences set to begin sailing in fall 2019 and beyond.

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