STX Finland to start talks to cut Turku, Rauma workforce

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 02 January 2013 02 January 2013

STX Finland is to start employer-employee negotiations in Turku and Rauma shipyards to reduce personnel in January 8.

As a result of the company's financial situation and the loss to France an order for a third Oasis class cruise ship, the company's fixed costs should be reduced by 30 percent.

Jari Aalto, shop steward at the Turku shipyard this may mean "several hundred" jobs cuts.

Aalto says, the situation was inevitable, because the STX's Finnish shipyards have been operating at a loss for several years, and both yards are now under utilised.

The Turku shipyard has received two cruise ship orders from TUI Cruises in Germany, and the production of the first ship has already begun. However, funding of either vessels is not yet complete.

STX unsuccessfully requested €50 million subordinated loan from the Finnish government to be secure Royal Caribbean's and TUI's shipbuilding.

"Now it is extremely important that financing of the TUI ships will be concluded successfully. If the ships are lost, it means the Finnish shipbuilding industry would be run down,” Jari Aalto says.

Royal Caribbean's Oasis order: Atlantic Star part of the package

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 27 December 2012 27 December 2012

Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) announced today that it has executed a contract with STX France to construct a third Oasis-class vessel for delivery in mid-2016.  This order is consistent with the plan announced by the company in October to build a sister-ship to the very successful Oasis of the Seas and Allure of the Seas.

"The Oasis of the Seas and Allure of the Seas have fundamentally transformed the cruise experience for our guests," said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd.  "These ships have consistently generated outstanding guest satisfaction ratings and continue to produce superior financial results.  We are thrilled to be adding a sister to this extraordinary class of vessels at a compelling price.  Being back building in France just adds to the pleasure."

"STX France is proud to partner with Royal Caribbean again and continue our decades-long relationship by building the third Oasis-class ship," said Laurent Castaing, chief executive officer of STX France. "Royal Caribbean has always been an important part of our shipyard's success, and we are delighted to add this highly innovative and spectacular ship to the list of vessels we have built together."

The newbuild contract includes the transfer of Pullmantur's Atlantic Star as part of the consideration.  Additionally, the contract is subject to satisfaction of financing and other conditions.  STX France has also provided the company with a one-year option for the mid-year 2018 delivery of a fourth Oasis-class vessel at similar pricing.      

Including today's contract and existing ship orders, projected capital expenditures for 2012, 2013, 2014, 2015 and 2016 are $1.3 billion, $700 million, $1.2 billion, $1.2 billion and $1.3 billion, respectively.  The company's annualized capacity growth rate from 2012 to 2016 remains at a historically low rate of 3.5%.