Siem to acquire German shipbuilder FSG

FSG orderbook includes two well intervention vessels for Siem Offshore FSG orderbook includes two well intervention vessels for Siem Offshore

SEPTEMBER 26, 2014 — German shipyard Flensburger Schiffbau-Gesellschaft (FSG) said yesterday that it has a new owner: Norwegian controlled, Cayman Islands registered Siem Industries, Inc. The transaction is subject to certain conditions, and is expected to close by the end of October.

The shipbuilder's two managing directors, Peter Sierk and Frank Bywater, welcomed the development with a statement that said: "We are very glad about the new perspectives that open up, as a consequence of this decision. We welcome Siem Industries on board: This time not as a client, but as the new and rightful owner of the FSG. This means a great chance for all of us – the shipyard and its employees."

With the take-over, the two managing directors expect FSG to strengthen its position in the offshore market.

"Siem Industries is a successful, globally expanding and financially strong family-owned enterprise. It allows us – the Flensburger Shipyard – to continue our successful developments in the global offshore-market," they said.

The Siem Group of companies (including subsidiaries and affiliates) operates 145 vessels and has a controlling interest in Siem Offshore and oil service company SubSea 7. Particularly these offshore activities have proven valuable, as demonstrated by its increasing growth.

Over the past 14 years, FSG has established itself as a leader in building specialized Ro/Ro and RoPax ships. However, for the last three years it has also been targeting the offshore industry and what Peter Sierk and Frank Bywater call "the proper foundation for the sustainable development and positive outlook for FSG" was the order for two well-intervention-vessels placed this February by Siem Offshore as part of an arrangement with Helix Energy Solutions Group, Inc. which will charter the vessels to provide services offshore Brazil under a new contract with Petrobras (see earlier story).

Currently on FSG's orderbook are a RoPax ferry for CMAL (Scotland), a second seismic vessel for WesternGeco (England), the two well intervention vessels for Siem Offshore (Norway and an LNG fueled Ro/Ro ferry for SeaRoad (Australia). These projects will keep the shipyard operating at full capacity until third quarter 2016.

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