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Odense builds smaller ships

Odense builds smaller ships
The Board confirms that it will continue building ships at Lindø, but at the same time the Board is completely aware that new conditions require new solutions.

The Board confirms that it will continue building ships at Lindø, but at the same time the Board is completely aware that new conditions require new solutions.

Odense to build smaller ships as credit crunch bites.

Yesterday, the Board of Odense Staalskibsværft A/S has agreed upon a new business model. The Board confirms that it will continue building ships at Lindø, but at the same time the Board is completely aware that new conditions require new solutions.

In the new business model, Lindø is changed into three business areas: A ship yard, an industry part and shared facilities.

In the future, the ship yard will concentrate on producing smaller ships, including, potentially, ships for the offshore area. This will not effect the current orderbook. At the same time, external businesses are invited to the facilities of the Lindø area for production of heavy steel products. The shared facilities, such as maintenance, workshops and infrastructure are to be used by both the yard and the external businesses.

A number of external business have shown interest in the new possibilities at Lindø. The business model is supported by the conclusions in an extensive analysis carried out by the internationally recognised consultancy A.T. Kearney.

?Today, the Board of Lindø presents a business model, which in turn means that we will continue to have a ship yard, but which also entails a reorganisation of part of the production at Lindø from ship building to alternative utilisation of the workforce and production machinery. Our wish is to keep a ship yard and other production at Lindø. Therefore, we have agreed upon a new business model which is creative and forward thinking, but also realistic and necessary,? says Chairman Lars-Erik Brenøe after the board meeting today.

The financial crisis has escalated significantly in recent months and the market for project financing has almost come to a complete standstill. Large parts of the market for newbuildings have collapsed. This has accelerated and increased the necessity for a decision on a new business model.

?We are pleased with the new business model for Lindø which we believe is right for the company. The business model is also right for A.P. Moller - Maersk, who will retain their technical knowledge of shipbuilding without having significant risk on a non-strategic business. Finally, it is the right decision for the Munkebo area which is set to gain a number of businesses in the area instead of one dominating business.

We will now continue the job of converting the shown interest into firm contracts and the job of getting new orders for the ship yard,? says Managing Director Finn Buus Nielsen from Lindø.

www.TurkishMaritime.com.tr

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