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Lürssen, German Naval Yards announce naval shipbuilding tie up

German Navy combat support vessel at GNYK
Photo: German Naval Yards Kiel

German shipbuilders Lürssen and German Naval Yards Kiel (GNYK) are planning the establishment of a joint company for work on military projects.

Led by Bremen-based Lürssen Group, the joint company would allow the two sides to improve the structure of the German shipbuilding industry and to bolster its efficiency and sustainability, it was said.

GNYK revealed that the two shareholding families laid the foundation for a definitive contractual agreement for the joint company earlier this week. The proposed combination remains subject to approval by the relevant merger control authorities.

The combination addresses the German public customer’s request to establish industrial structures that guarantee reliable domestic availability and an efficient cost structure. In addition to the construction of highly innovative and technologically advanced naval vessels, this also includes the functional integrity of such vessels over the entire life cycle, the company said in a statement.

The recent classification of the entire naval shipbuilding industry as German “key technology” by the German government in the context of the revised “Strategy paper for the strengthening of the German security and defense industry” supports such a request.

“The strengthening of the domestic naval shipbuilding industry through a combined entity between Lürssen and German Naval Yards Kiel meets these objectives and further strengthens the ability of Northern German shipyards and the domestic maritime supply industry to successfully compete on a global scale,” GNYK said.

The German government, represented by their Maritime Coordinator, Norbert Brackmann, MdB, was involved in the process from early stages on. He accompanied and supported the process substantially with his expertise.

“The consolidation in Germany is long overdue. Germany has first-class naval yards and excellent technologies. However, our customers require partners with sufficient scale and capabilities to fulfil large-scale orders of strategic importance,” Iskandar Safa, CEO of Privinvest Holding SAL, the ultimate parent company of GNYK, commented.

“Our customers can be better served if domestic players join forces. We have made an important step into the right direction today. We look forward to working with our partner Lürssen.”

“We are convinced that the consolidation of our naval shipyards has significant strategic merit and will strengthen their competitiveness in the future. We are pursuing this step with the objective to provide a more comprehensive and efficient offering for the supply and maintenance of high-quality naval units to the national customer,” Friedrich Lürßen, shareholder of the Lürssen Group, said.