Cruise shipbuilding is a fascinating arena not merely for the remarkable engineering prowess that goes into making ever larger passenger vessels but also its economic climate. After all, the single greatest bottleneck to cruise industry expansion is that there is simply not enough facilities to keep up with new ship demand, and it looks like there may be one less player soon.
STX France in Saint-Nazaire has been recently seeking a buyer following the instability of the South Korean STX shipbuilding group, and it's that much closer to finalizing a deal with Italian Fincantieri. Reuters is reporting that a South Korean court has approved the shipbuilding firm as the preferred bidder in the anticipated transaction.
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STX previously sold its STX Finland facility to German Meyer Werft, and STX France looks to be next, which would complete the sale of two historic shipyards. STX Finland, now Meyer Turku, was once Masa-Yards in the 1980s, and STX France was originally Chantiers de l'Atlantique, builder of such storied liners as the classic SS Normandie and modern Queen Mary 2.
The French state currently holds a portion of STX France and intends to maintain a 33 percent share of the yard even under majority Fincantieri ownership. French Finance Minister Michel Sapin said that French Industry Minister Christophe Sirugue is meeting with Saint-Nazaire shipyard unions today, presumably to move talks further forward.
Most remarkably, the purchase of STX France would increase Fincantieri's shipbuilding market share to around 60 percent, up from 40 to 45 percent. The other main international builders include Meyer Werft, MV Werften, Lloyd Werft and Mitsubishi Heavy Industries. Increased consolidation of the already few yards around the world ensures greater global control of new ship construction bidding.
Of course, what would better help the industry overall are additional facilities.
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STX France is currently building the first of MSC Cruises' new Meraviglia-class, the first of Celebrity Cruises' new Edge-class and the fourth of Royal Caribbean International's Oasis-class following the new Harmony of the Seas. New ownership would transfer the first two Royal Caribbean Cruises Limited contracts to Fincantieri - which has long been a favorite builder of Carnival Corporation ships - for the first time ever.
It would also put control of MSC Cruises' two current prototypes under the Italian company as well. Its other Seaside-class is nearing final work at Fincantieri's yard in Monfalcone, Italy. In fact, we will soon tour the new MSC Seaside under construction there first thing in February as well as attend the coin ceremony for its MSC Seaview sister-ship to follow.
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