French President Nicolas Sarkozy makes a speech during his visit to the historic Saint-Nazaire shipyard, STX’s French subsidiary, accompanied by his economic ministers, last week. / Courtesy of STX |
By Kim Yoo-chul
Staff reporter
French President Nicolas Sarkozy has pledged financial and administrative support to STX Group, the South Korean shipbuilder said, Thursday.
According to the Korean shipbuilder, Sarkozy accompanied by his economic ministers visited the historic Saint-Nazaire shipyard of STX's French subsidiary and checked the yard's key facilities.
"Nobody had expected it in the Saint-Nazaire shipyard. But STX did invest," Sarkozy was quoted as saying in the release.
"Saint-Nazaire shipyard, which has been steadily winning cruise and naval ship orders, is France's key industrial base," according to the president.
Sarkozy said some parts of the government's $45.5 billion fund will be allocated for projects to build highly-advanced vessels.
Sarkozy's call came after he remarked that STX is going to build two Mistral naval helicopter carriers for Russia.
"With our Russian friends, STX will build the two. Paris is still negotiating the contract, but the decision to go ahead is certain," the French president added.
A Mistral carrier can carry 16 helicopters ― 450 service members or up to 900 service members without weapons and equipment and 60 vehicles or 13 tanks, according to STX sources.
"With the support from the French government, we are positive that our French subsidiary will see sustainable growth," said a senior STX spokesman Kim Ho-jeong.
Paris holds a 33.3 percent stake in STX France Cruise, the owner of the last remaining shipyard in France that manufactures large cruise-liners.
Because of Paris' partial nationalization, STX's stake in the shipyard has been reduced to 50.01 percent from 75 percent.
STX officials say the shipyard has already fully booked its orders over the next few years thanks to more cruise ship and military-related orders.
Last week, Swiss-Italian MSC Cruises signed the order for the construction of a cruise ship by shipbuilding group STX France. The ship is the 12th in its fleet, and will be delivered in May 2012, according to Kim of STX.
STX is positive about its outlook for the remainder of this year helped by a high demand for cruise and ferry ships that were coming from Europe.
STX officials say STX’s European bases won’t be heavily affected by any financial turmoil and added the recent adjustment in employment will boost production efficiency.
"While the long-term outlook looks increasingly positive, the current excess capacity at the cruise and ferries yards creates just short-term challenges, considering the recovery of such demand," said another STX official.
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