Fincantieri has expressed interest in the restructuring of Greece’s Elefsis shipyards

Athens, Greece (PortSEurope) October 25, 2021 - The Italian shipbuilder Fincantieri SpA has expressed interest in joining an investment group to lead the restructuring of the Elefsis Shipyards. The Greek shipyard has been struggling for a number of years and the U.S. company ONEX had proposed a restructuring in 2019. The shipyard is considered a key strategic asset by the Greek government, which would like to see the shipyard on a firm footing. Last Thursday, there was a meeting between Development and Investment Minister Adonis Georgiadis, Defense Minister Nikos Panagiotopoulos and Alternate Minister of Development and Investment Nikos Papathanasis with the chairman and chief executive officer of ONEX, Panos Xenokostas, and the vice president and managing director for shipyards at the Fincantieri Group, Giuseppe Giordo. Georgiadis said that the Italian interest was a great step forward in restructuring the shipyard and was welcomed by the Athens government. Washington is keen to have some U.S. corporate interest in the facility and has supported ONEX. It also see the shipyard as a key regional asset. Last year U.S. ambassador to Greece, Geoffrey Pyatt, visited the shipyard, and spoke positively about its future and U.S. interest. Elefsis is located about 20 km northwest of Piraeus and 30 minutes from Athens’ international airport El. Venizelos. The main port serves dry bulk and general cargo vessels, while oil tankers and LPG carriers visit Elefsis Refinery in a daily base. The Port of Piraeus is operated by Piraeus Port Authority, part of China’s COSCO Shipping Ports Limited. Washington would not be keen to see another asset in the hands of a geopolitical competitior. “It is an important step in Greek-Italian business cooperation. Our goal is to contribute in creating in Greece one of the best shipbuilding industries worldwide,” Giordo stated. Elefsis Shipyards is a Greek shipbuilding company, also involved in other industrial construction. Founded in 1968, it has built many types of ships, including the largest Greek-built bulk carriers and military ships. Structure located about ten nautical miles from the docking area of the port of Piraeus, the Greek government considers the shipyard a strategic resource for the country. This is how the Greek - Italian business cooperation continues on the Hellenic Elefsis shipyard in Piraeus, in financial difficulties. On 21 October, Fincantieri, the Military Ships Division expressed an expression of interest during the meeting between the interested Hellenic ministries (Development and Defense) and the CEO of ONEX. Onex Shipyards, already two years ago, had declared that it would acquire the yard in a preliminary attempt to restore the financially troubled operation. ONEX, in 2019, had proposed a rescue plan for the shipyard. Earlier this year, Ernst & Young drafted a new business plan for the yard stating that for the operation to become financially viable, the yard would need to receive a significant share of the work from the Hellenic Navy. The 'recovery plan' advice reports that the shipyard's debts are far higher than previously forecasted and estimates had set the debt at between $ 300 and $ 350 million; but Ernst & Young, last February, believed that the real size of the bond was close to $ 500 million. Even the United States, June 2020, had expressed their support for the ONEX operation with the US Development Project Finance Agency. US Ambassador to Greece Jeffrey Pyatt said the shipyard is of strategic importance as it has provided services to the US Navy's Sixth Fleet, as well as LNG trading and other commercial shipments in the Eastern Mediterranean. After the meeting the other day, the Greek government, welcoming the proposal towards the restructuring of Elefsis Shipyards, declared itself enthusiastic as one of the largest shipbuilding groups globally, the Fincantieri Group, has officially expressed interest to participate in the effort, in collaboration with ONEX. Copyright (C) PortSEurope. All Rights Reserved. 2021.

Fincantieri has expressed interest in the restructuring of Greece’s Elefsis shipyards

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Fincantieri has expressed interest in the restructuring of Greece’s Elefsis shipyards

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