Rescue underway for troubled German shipbuilder FSG Nobiskrug?

Written by Nick Blenkey
FSG Nobiskrug press conference

Provisional insolvency administrators Dr Christoph Morgen (L) and Hendrik Gittermann (R) during press conference at the Nobiskrug shipyard. [Photo: © Marianne Lins]

There are hopeful signs that a rescue could be in the works for the two shipyards owned by Germany’s FSG Nobiskrug — Flensburger Schiffbau Gesellschaft (FSG) in Flensburg and Werft Nobiskrug in Rendsburg, Provisional insolvency administrators Dr Christoph Morgen (whose name will be famliiar to those who have read our previous coverage of German shipyard rescues) and Hendrik Gittermann said today that the shipyards have received several offers from potential investors. Those investors, they said, are industry-related companies from Germany, not financial investors. The news was released during the visit of Schleswig-Holstein’s Prime Minister, Daniel Guenther, and State Minister of Economic Affairs, Claus Ruhe Madsen, to a staff meeting at the invitation of the workers’ union IG Metall Rendsburg

“Negotiations with interested parties are well advanced. This applies equally to the Rendsburg and Flensburg sites,” said Gittermann. Nonetheless, neither Gittermann or Morgen consider a complete and immediate resumption of production at the beginning of February, and then under new management, to be unrealistic.

Before that, maintenance work and TUV inspections would have to be carried out, insurance cover applied for and much more would have to be done.

Meanwhile, the preparations and work on the 210-meter long RO/RO vessel under construction in Flensburg are to resume at the Flensburg site in February if possible, thus providing the shipyard with short-term employment. The provisional insolvency administrator, Dr. Morgen, is in close contact with the Australian shipping company SeaRoad regarding matter. “The interest and cooperation shown by the shipping company are very encouraging and promising,” said Dr Morgen. SeaRoad says it remains committed to the build of Hull No. 784 which was contracted in September 2021. SeaRoad’s Executive Team is currently in transit to Germany to progress discussions with relevant parties.

Insolvency proceedings for the companies in the shipyard group are expected to be opened on February 1. This is also when insolvency substitute benefits for the approximately 500 employees at the yards end.

“That said, the potential investors need a few more months before work can really start again at the shipyards,” said Dr Morgen.

To avoid an otherwise inevitable closure of the business, all employees would have to transfer to a transfer company for a period of up to four months from February 1. There they will receive 80% of their previous net wages.

“The aim is to enable as many people as possible to continue to work at the shipyards as soon as possible, as soon as suitable solutions are found,” said Dr. Morgen.

“The decision on this investor solution must be made by the opening of the insolvency proceedings on February 1,” notedd Gittermann.

The provisional insolvency administrators sare counting on the financial commitment of the investors. At the same time, they are talking to the state government of Schleswig-Holstein about possible interim financing, since the entire investor process is still under enormous time pressure

Categories: News, Shipbuilding Tags: , , , , ,