shipbuilders - Burmester hopes long-term on German shipyards
Schleswig-Holstein's Maritime Coordinator Andreas Burmester sees good chances for the creation of a shipbuilding giant in German naval shipbuilding in the coming years. "It would be desirable if it eventually comes about through the detour of an investment entry at Kiel-based Thyssenkrupp Marine Systems (TKMS)," Burmester told the German Press Agency. "I don't find that impossible, as the business is booming. That's no secret."
Burmeister advises the state government on all matters related to maritime issues. He was the Technical Board member of the Kiel yard, which he left at the end of 2020. Thyssenkrupp and the US investment firm Carlyle have entered into a deep examination and evaluation of TKMS's marine business. It's about a possible partial sale of TKMS to Carlyle. At the same time, talks are ongoing with the federal government about the state's participation in Thyssenkrupp's marine business.
"The Reconstruction Loan Corporation is making this deal happen," said Burmester. "Because TKMS's competitors are all state-owned companies." The entry of the German state through the promotional bank KfW could facilitate the business. The marine business has long cycles, with construction times lasting several years. Therefore, marine yards need regular high guarantees for building frigates or submarines. This could become easier after a KfW entry.
Detour via Financial Investor Carlyle
"TKMS wants to get out of the Thyssenkrupp conglomerate initially," said Burmester. "That's why this detour could be right. The investor usually holds companies for five years." Burmester would not be surprised if this was just the first step and, in three or four years, it was about the merger of TKMS with the naval business of Lürssen.
Burmester sees growth prospects in naval shipbuilding in Germany and other western countries. "China is currently producing as many gray ships in two years as the British fleet has. Something needs to happen there, or else the West's goals, including the problems associated with them, will be at risk." Naval shipbuilding is a key technology. TKMS alone has approximately 3700 employees at its Kiel site and about 7500 employees worldwide with a turnover of around two billion Euros according to company statements.
Concerns about Shipyards
While Burmester sees good prospects for the large Kiel yard, he is concerned about the development of the Flensburger Schiffbau-Gesellschaft (FSG) and Nobiskrug (Rendsburg) owned by investor Lars Windhorst. "Both companies would not exist without Windhorst's investment," said Burmester. "But both companies still lack necessary orders." It's not a sustainable business model. A yard is there to build ships or installations and to generate innovations." Companies risk losing their connection if employees are no longer in training. "And that's exactly what's happening now."
Interest in Industrial Complexes at the Flensburg Fjord and directly at the North Sea Canal in Rendsburg already exists, said Burmester. "There are at least three interested parties for both locations." Burmester did not want to make any further comments on this.
Beginning of June, the controversial investor presented the new leadership team of the shipyards with Robert Fischer von Mollard as a new business manager and Michael Bollmann as a technical leader. At a press conference in Flensburg, he clearly stated that he sees himself as part of this future - even if he steps back from operational business at the shipyards. Both shipyards have had issues for months; salaries were paid late, new orders were scarce. Windhorst himself was criticized for his behavior and lack of communication.
- Burmester mentioned that the Reconstruction Loan Corporation could help facilitate the possible partial sale of Thyssenkrupp Marine Systems' marine business, as TKMS's competitors are all state-owned companies.
- Lars Windhorst, the controversial investor, has invested in the Flensburger Schiffbau-Gesellschaft (FSG) and Nobiskrug in Rendsburg, but both companies are currently lacking necessary orders and it's not a sustainable business model.
- Andreas Burmester, Schleswig-Holstein's Maritime Coordinator, sees the armaments industry, especially naval shipbuilding, as having good growth prospects in Germany and other western countries, but expressed concerns about the development of the FSG and Nobiskrug.
- According to Burmester, TKMS wants to get out of the Thyssenkrupp conglomerate initially, which is why a detour via financial investor Carlyle could be the right move, as the investor usually holds companies for five years.
- Burmester mentioned that there are at least three interested parties for the locations at the Flensburg Fjord and directly at the North Sea Canal in Rendsburg, where the two shipyards owned by Lars Windhorst are located, but he did not want to make any further comments on this matter.
