Vasemmistoliitto, a left wing member in prime minister Jyrki Katainen's coalition, urges the Finnish government to quickly acquire a share of at least 34% in STX Finland, the troubled shipbuilder that is owned by STX Offshore & Shipbuilding, to secure the future of the Finnish shipbuilding industry.
"The passivity of the owner of STX (Finland) has led to future orders being put in danger as even letters of intent cannot be worked on to firm orders due to financing problems. The incapability and unwillingness of the Korean owner (to recapitalise STX Finland) threatens to drive out the entire shipbuilding sector away from Finland," the party said in a statement.
"The time has come to severe the umbilical cord to the troubled STX group and take the shipbuilding industry into Finnish ownership. Finland must rid herself of the Korean owner that is not committed to continue shipbuilding in Finland," Vasemmistoliitto said.
STX Offshore & Shipbuilding owns 100% of STX Finland and 64% of ATX France via STX Europe, a company based in Oslo that the Korean company owns in full
The situation in Finland took an acute turn for the worse on Wednesday, when the shipbuilder said that talks with Scandlines, the Danish-German ferry, to finalise an order agreed in principle in July for two large short haul ferries had been terminated as financial details could not be put in place on time.
Media reports in Finland have suggested that tumbling block was a weak balance sheet of STX Finland, which had prevented Finnvera, the Finnish state guarantee institution, from issuing guarantees of construction time loans to STX Finland. Reports say that Scandlines, which is controlled by the London based private equity investor 3i, has opened talks with other shipyards.
STX Finland has two 99,300 gross ton cruise ships on order from TUI Cruises in Hamburg, the second of which will be delivered in 2015.
Earlier today, Frontline 2012, the rapidly expanding commodity shipping company in the business empire of London based billionaire shipowner John Frederiksen, said it has deep concerns over the fate of bulk carrier orders at other shipyards of STX Offshore & Shipbuilding
Frontline 2012 has eight newbuilding contracts with STX Dalian and further six newbuildings with STX Offshore & Shipbuilding (Korea). "STX Korea has subsequently subcontracted the latter vessels to STX Dalian. STX Dalian has encountered financial difficulties, and the construction has stopped. The company is following the situation closely and will make every effort to ensure that STX deliver the newbuildings, which they are contractually committed to, the company said.
"There is however a substantial risk that these newbuildings will not be delivered according to the contracts and Frontline 2012 has therefore taken legal measures to be compensated for any loss caused by non delivery and is currently in an arbitration process with STX, mainly on the six ships, for which STX Korea are responsible," Fronline 2012 noted.
