German Shipyard FSG-Nobiskrug Seeks Investors Amid Insolvency
The German shipbuilding group FSG-Nobiskrug Holding is navigating a turbulent financial landscape. Recently, the company received temporary financing to maintain operations while searching for permanent investors. This comes after a contentious insolvency order was issued by German courts, despite the owners’ claims of potential refinancing. The situation has raised concerns about the future of the shipyard, which has a rich history dating back to 1872.
Government Support and Temporary Financing
On December 23, Germany’s Federal Minister of Economics, Robert Habeck, visited the FSG shipyard in Flensburg. His visit was prompted by an invitation from the union IG Metal, which represents the workers at the shipyard. During his visit, Habeck met with provisional insolvency administrators and expressed his commitment to supporting the rescue efforts for the struggling shipyard.
To aid in the shipyard’s survival, the State of Schleswig-Holstein’s Guarantee Bank has stepped in to provide essential insolvency funds and loans. Christoph Morgen, the acting administrator for the FSG yard, confirmed that these funds would cover operating costs until the end of January. However, he emphasized the urgency of finding investors, stating that time is running out. The shipyard has been building RoRo ferries in recent years, but it has faced significant financial challenges, including back pay and overdue bills.
In light of these challenges, Minister Habeck underscored the importance of shipbuilding to Germany’s economy, particularly in northern regions. He pledged to work personally to help preserve the shipyards, highlighting their contributions to the local economy and employment. The government’s involvement reflects a broader commitment to revitalizing the shipbuilding industry in Germany, which has faced numerous challenges in recent years.
Future Prospects and Investor Interest
The FSG shipyard has a storied history, having undergone a previous insolvency in 2020. At that time, investor Lars Windhorst rescued the yard and merged it with the Nobiskrug yard in Rendsburg, which has been operational for over 120 years. Nobiskrug has specialized in luxury superyachts since 2000. Currently, Morgen is focused on completing a transaction by February 1, with the possibility of separating the two yards for different investors.
Morgen has indicated that there has been interest from potential investors, with visits to the yard already taking place. He aims to continue work on a RoRo vessel being built for SeaRoad, which could be pivotal for the shipyard’s future. Meanwhile, the Rendsburg location is managed by provisional insolvency administrator Hendrik Gittermann, who reported a surprising level of interest in Nobiskrug Yachts and FSG Nobiskrug Design from international inquiries.
Despite the financial turmoil, there is optimism about the shipyards’ potential in naval shipbuilding and the offshore wind energy sector. The German government has previously intervened in similar situations, such as with the Meyer Werft shipyard in Papenburg, where they guaranteed loans and provided capital to transition the company back to private ownership. The hope is that FSG-Nobiskrug can find the right investors to revitalize its operations and secure a stable future.
