Industry investors look to FSG Nobiskrug

FSG Nobiskrug Shipyards has received several offers from potential German industry-related investors, according to the provisional insolvency administrators, Dr Christoph Morgen and Hendrik Gittermann, during an event in Rendsburg on 17 January.

“Negotiations with interested parties are well advanced. This applies equally to the Rendsburg and Flensburg sites,” says Gittermann.

The update was given during a visit by Schleswig-Holstein's Prime Minister Daniel Günther and State Minister of Economic Affairs Claus Ruhe Madsen to a staff meeting organised by the workers’ union IG Metall Rendsburg.

Dr Morgen and Gittermann say that a complete and immediate resumption of production at the beginning of February under new management is unrealistic. They attribute this to required maintenance work, TÜV inspections, and the need to secure insurance coverage, among other factors.

Insolvency proceedings for the shipyard group are expected to begin on 1 February, coinciding with the end of the insolvency substitute benefits period for the company’s 500 employees. “That said, potential investors need a few more months before work can fully restart at the shipyards,” adds Dr Morgen.

Starting 1 February, all employees will be temporarily transferred to a separate organisation, aptly known as a transfer company, to prevent the business from closing entirely. This arrangement will last up to four months.

Employees will remain on reduced pay during this time, receiving 80 per cent of their previous net wages. The transfer company temporarily retains the workforce while efforts continue to restructure the shipyard and secure new management and investors.

Preparations and work on the 210-metre-long cargo ship RoRo are expected to resume at the Flensburg site in February, providing the shipyard with short-term employment.

Dr Morgen affirms that he is in close contact with the Australian shipping company SeaRoad regarding this project.

“The interest and cooperation shown by the shipping company are very encouraging and promising,” he says. “Our aim is to enable as many people as possible to return to work at the shipyards as soon as viable solutions are in place,”

SeaRoad has confirmed its commitment to the construction of Hull No. 784, which was contracted in September 2021. The company’s executive team is currently travelling to Germany to advance discussions with the relevant stakeholders.

The provisional insolvency administrators rely on investors' financial commitment and are discussing possible interim financing with the Schleswig-Holstein state government and the investor process as being under major time pressure.

“The decision on this investor solution must be made by the opening of the insolvency proceedings on 1 February,” adds Gittermann

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