Shipbuilding to continue as yard plans future

New Szczecin Shipyard (SSN) will continue negotiations on finance and delivery terms with its clients and banks this week to resume work on five ships transferred from the order books of bankrupt Szczecin Shipyard. While SSN management face reluctance from banks, which want to limit their exposure to the industry, the shipyard's clients are cooperative despite facing a five-month lag in the delivery of their vessels. Last week the Industrial Development Agency (ARP) unveiled a three-stage rescue plan for the Polish shipbuilding industry aimed at boosting shipbuilding capacity at SSN to 10-12 ships a year and restoring 5,500 jobs by 2004, following the transfer of contracts from the order books of Szczecin Shipyard to SSN. The plan hangs on the successful completion and sale of vessels that the shipyard's banks hold as collateral. "The implementation of this program will allow for the continued development of the shipbuilding industry," said Arkadiusz Krźżel, president of the ARP. "This decision is of strategic significance to the economy since forecasts for the world shipping industry for 2002-2005 predict stable demand and a slight increase in prices." The collapse of Szczecin Shipyard last month left behind incomplete orders for 33 ships worth $1.2 billion. SSN, which was officially registered as a company last week, was created by the government to build ships ordered from Szczecin Shipyard using facilities leased from the bankrupt company.

In the past three weeks, the management of SSN has worked toward a deal with banks to resume work on 11 ships that would provide SSN with orders for a year. SSN has already completed one ship, which was test launched last week, and has secured finance for five further vessels, said Andrzej Stachura, president of SSN. "Our plan is to complete the ships that were started by Szczecin Shipyard," Stachura said. "We now have financing for five of them." Although work at the shipyard ceased for five months, creating setbacks to delivery schedules, SSN does not anticipate that buyers will take their business elsewhere, said Marek Molewicz, chief public relations specialist at Stocznia Szczecińska Porta Holding, Szczecin Shipyard's parent company. "The toughest negotiations are those with banks, which are defending their interests given that they have already incurred losses," Molewicz said. "SSN is also negotiating orders for additional ships ... there is currently little threat to the process from our clients."

Customers staying put German ship operator Peter Döhle ordered one of the eight ships currently under negotiation and had another 10 container ships on Szczecin Shipyard's order books. The company wants to continue working with SSN. "We had a meeting with SSN and asked them how they want to build our vessels ... we asked them to do their homework and the minute they know how they want to do it they should present us with prices and delivery timings," Wieck said. Poland's shipbuilding industry exports 90% of its products and was the nation's third-largest source of exports in 2001.