Sietas Shipyard sold to Russians

11 Feb 2014
From left: Frank Horch, Hamburg’s senator for economy, Garegin G. Tsaturov, co-owner of Pella Shipyard, Natallia Dean, managing director Terraline, and Berthold Brinkmann, insolvency administrator of Sietas Shipyard

From left: Frank Horch, Hamburg’s senator for economy, Garegin G. Tsaturov, co-owner of Pella Shipyard, Natallia Dean, managing director Terraline, and Berthold Brinkmann, insolvency administrator of Sietas Shipyard

After a two-year period, German insolvency administrator Berthold Brinkmann has announced a deal to sell the JJ Sietas shipyard in Hamburg to Pella of St Petersburg.

As from 10 March, Pella Shipyard from Otradnoye near St. Petersburg will be taking over the assets and business of Sietas. The buyer has undertaken to continue to operate Sietas as a shipyard for at least eight years hence, and to invest around €15 million in the yard. About 120 Sietas employees will be transferred to the new company, which plans to grow to at least 400 jobs by the end of 2016.

The purchase agreement was concluded with Terraline, a Hamburg-based subsidiary of the Pella group. On completion of formalities Terraline will be renamed Pella Sietas GmbH. Although the sale has been officially certified by German lawyers, it is still subject to approval by the banks and creditors of Sietas. Details of the purchase price remain confidential, but Pella is said to be funding thae deal through its own assets.

Pella Shipyard says it already has orders for the construction of tugs, icebreakers and supply ships, as well as other high level specialised ships. As well as expanding the current yard activities, Pella expects the Sietas deal will benefit suppliers and subcontracting companies around Hamburg.

A wind farm jackup vessel, which was ordered by Dutch company Van Oord from Sietas before the yard’s failure, and renegotiated by the administrators is scheduled for delivery, in the next few months. Mr Brinkmann says this is the first ship of its type to have been developed and built in Germany, and was built without any state aid or loans. Also during the administration period, Sietas handed over the suction dredger Eke Möbius to its customer Josef Möbius on schedule.

Mr Brinkmann said: “I am delighted that we have found a strategic investor for Sietas Shipyard in the company Pella Shipyard. It is not only acquiring one of Hamburg’s long-established maritime companies, but also securing the expertise of the experienced Sietas employees. In addition, a further 280 employees are to be taken on by the end of 2016, impressively underlining the trust Pella Shipyard puts in the competence of this north German shipbuilder.“

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