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Two Finnish shipyards ask state for hundreds of millions of € in emergency financing

Posted on October 13, 2022

2 major shipyards Finland asks government for emergency loan due to financial difficulties, Helsingin Sanomat clearly On Friday.

According to information obtained by the daily from three independent sources, Meyer Turk is currently negotiating up to more than €200 million in emergency state loans. Then Rauma Marine Constructions gave him a capital loan of €40 million in the summer due to challenges at a shipyard in Rauma, southwestern Finland.

Timo MeyerMeyer Turku’s CEO did not respond to a request for comment from Helsingin Sanomat on Friday.

Meyer Turku employs approximately 2,000 people directly and a further 7,500 through a network of subcontractors who provide services to Turku’s shipyards. The shipyard reported her €1.1 billion in revenue and her net loss of more than €17 million in 2021.

The shipbuilder highlighted in last year’s financial report that competition for the cruise ship space is fierce with the establishment of new shipyards in China, Europe and South Korea. Shipyards have also had to contend with component and material shortages caused by the coronavirus pandemic.

According to Helsingin Sanomat, the Rauma shipyard is in financial trouble for much the same reason. Finnish Industrial Investment (Tesi) granted her €40 million capital loan to the shipyard last summer following a decision by the Ministerial Committee on Economic Policy, according to sources in the newspaper.

Tesi is a state-owned venture capital firm responsible for promoting small business operations and, under certain conditions, restructuring industries.

Rauma Marine Constructions posted a net loss of €58.4 million on revenue of €154.2 million last year. In addition to the 210 staff, about 500 employees of subcontractors work at the shipyard.

Shipyards have repeatedly failed to deliver ships on time, a fact illustrated by operational disruptions due to the coronavirus infection and delays in subcontractor deliveries due to the pandemic. But some sources familiar with the operation attributed the delay in deliveries to lack of expertise and poor management, writes Helsingin Sanomat.

Rauma Marine Constructions is tasked with building four warships for the Finnish Navy. Also, their delivery has been significantly delayed.

Source

 

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