Genting Hong Kong takes control of three  further European shipyards

Genting Hong Kong has announced the acquisition of Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany for the consideration of €230.6 million.

The purchase of the three shipyards, along with Lloyd Werft last year, enables Genting Hong Kong to realize its global cruise ships fleet strategy over the next decade for its three brands – Crystal Cruises, Dream Cruises, and Star Cruises.

“The rapid growth of the world cruise industry, especially in China, has led to cruise ship order book reaching an all-time high,” said Tan Sri Lim Kok Thay, chairman, Genting Hong Kong.

“In order to ensure that the Company can build the required number of cruise ships in the next decade for our global fleet expansion, it is strategic that we acquired shipyards that can build our cruise ships in a timely basis and in a more cost effective manner.”

The newly acquired yards together with the previously purchased Lloyd Werft will be managed as the Lloyd Werft Group, optimizing the strengths of each of the yards for design and construction of cruise ships and megayachts.

Ownership of the shipyards will free the company from both the delivery timing and pricing uncertainties associated with the cruise ship order book cycle, which is at a historic high and allow management to focus on the strategic planning, design and deployment of its planned cruise ships among its three brands.

The three newly acquired shipyards are unique with covered dry-docks and building halls, resulting in high labour productivity and completion quality as cruise ships can be constructed regardless of weather conditions.

The Wismar shipyard’s dry-dock measures 340m long and 67m wide and the Warnemunde shipyard’s drydock measures 320m long and 54m wide and are capable of building cruise ships larger than the largest cruise ships currently afloat.

The Stralsund shipyard has a ship lift to launch cruise ships and megayachts up to 270m long.

These shipyards, with further investment, will have a steel fabrication capacity of about 150,000 tons a year, sufficient to build a number of cruise ships and a megayacht yearly.

“With all the yards situated in Germany, a country with a long tradition of efficiency in building high quality and innovative cruise ships and megayachts, the Lloyd Werft Group, with approximately 1,700 experienced management and workers, is well placed to succeed as one of the best cruise and megayacht shipbuilding companies in the world.

“Germany is also where the largest cluster of marine equipment suppliers are located and has excellent Government maritime coordination policies,” said Tan Sri Lim Kok Thay.

“The investment in the Lloyd Werft Group will have good returns from the 10 year planned order book, fits perfectly with the Company’s global cruise strategy and is in the long term interest of the company.”

With its yacht product, Crystal goes for small-ship intimacy

The 31 suites on the refurbished Esprit are smaller but more intimate than one might expect on a traditional Crystal vessel.

ABOARD THE CRYSTAL ESPRIT — The latest ship in Crystal Cruises’ fleet lies anchored in a protective cluster of tropical islands in the Seychelles, the Indian Ocean archipelago. In one direction, the ship’s two-person submarine is taking enthralled passengers on a 30-minute tour of an undersea coral garden. In another, Zodiacs zip guests to a sandy beach prowled by giant tortoises.

One thing is clear: This isn’t your grandfather’s Crystal Cruises.

The debut of the Esprit after a Dec. 20 christening ceremony marks the operational start of a new era at Crystal under its Malaysian owners Genting Hong Kong, which acquired the line in March for $550 million from Japan’s NYK, which had owned it for 25 years.

Crystal has built up a dedicated cadre of loyalists, and its officials, led by CEO Edie Rodriguez, are confident that the new Crystal will maintain its traditional passenger base, while the extensions of its core cruise product will attract new blood.

So what is the Crystal Esprit like?

A dozen top travel agents on a preview cruise remarked first that the Crystal standard of service has been successfully imported, despite ocean swells that cut a week-long training cruise to a day and a half.

“They’re very friendly and warm,” said Ralph Iantosca, owner of Dallas-based GoGirl.Travel, commenting on staff and crew.


The ship’s Sunset Bar is outside but covered by a canopy.

Another strong impression was about the size of the ship. With just 31 suites, the ship has none of the scale of Crystal’s two 1,000-passenger vessels; instead, it boasts the intimacy of small-ship cruising.

Guests on the Crystal Esprit will get the chance to know each other well. Making a play on the name, Rodriguez said they will develop an “esprit de corps.” They will also make friends with the largely Filipino staff.

At 280 square feet, cabins are not huge by luxury standards, but nevertheless Iantosca said they exceeded his expectations.

The Esprit is not out-of-the-box new. It was built in 1991 and was transferred to Crystal from Genting’s Star Cruises, where it was a charter-only vessel for the company’s high-end customers.

Crystal spent three months redoing the vessel’s interior and giving it new decorations, cabinetry, carpeting and fixtures, said COO Thomas Mazloum.

Its five decks include a small plate/buffet restaurant, a slightly more formal dinner venue, a lounge and an expansive aft Sunset Bar, which is outdoors but covered by a white canopy.

There is a small pool and gym and a postage stamp of a casino.

A good part of the Esprit’s revenue is expected to be from charter business. After the ship was named, Genting Hong Kong chairman K.T. Lim stood in the Sunset Bar and gestured to a nearby yacht that was every bit as long as the 280-foot Esprit.

That yacht, Lim said, would likely charter for as much as $1 million a week, but it has far fewer staff and only a half-dozen bedrooms. By comparison, “this is an incredible value,” Lim said of the Esprit.

“I do a lot of yacht charters,” said Iantosca, “and for a client who doesn’t want to spend [big], this is a good alternative.”

Another feature that distinguishes the Esprit is a toy cabinet with all manner of water sports equipment, including a stylish 12-passenger Wider speedboat and a two-person U-Boat Worx submersible submarine that is one of only four in the world.


The Crystal Esprit made its debut last month in the Seychelles.

On a demo, we were startled to run across a half dozen scuba divers, who were probably equally startled to see the submarine with its 3.9-inch-thick acrylic bubble suspended between two pontoons.

The sub, which will take passengers on 30-minute excursions for $599 a person, is like scuba diving in a high-tech lounge chair.

Food on the Esprit is cooked nearly on demand, and an open kitchen enlivens the Yacht Club dinner venue.

There is a butler assigned to every stateroom, which didn’t match the vibe in the laid-back Seychelles, where the Esprit will sail this winter. In the spring it moves to the Adriatic where it will cruise the coast between Venice and Dubrovnik, Croatia.

Pressed for downsides, Iantosca said the small size of the ship cuts both ways.

“I think you need to be aware of motion” that rocks the ship depending on the vigor of the seas. But all things considered, Iantosca was pretty impressed.

Genting to buy Crystal Cruises and finance new ship

Crystal Serenity

Genting Hong Kong has agreed to acquire Crystal Cruises from NYK Line for $550 million in cash, and the buyer said that a third ship is in the works for the two-ship line.

Crystal’s previous newbuild was the Crystal Serenity, delivered in 2003.

Genting’s CEO, Tan Sri Lim Kok Thay, said that Crystal’s current management and crew will remain.

“Genting will provide financial resources and proven expertise in innovative ship design to build a new ship that will set the highest standard in luxury cruise ships,” said Star Cruises’ CEO.

Genting is the parent of Star Cruises, the largest cruise line in Asia. It also owns a piece of Norwegian Cruise Line. The Crystal acquisition is due to close in the second quarter.

Crystal President Edie Rodriguez said, “After 25 successful years with NYK, we are excited to have Genting Hong Kong as the new owner of Crystal Cruises. The proposed expansion of our fleet will present our loyal Crystal Society members and new luxury cruise guests with more itinerary options, accommodation choices and exceptional vacation experiences.”

Japanese shipping company NYK Line has owned Crystal since the brand was created in 1988. Crystal operates the 922‐passenger Crystal Symphony (launched in 1995) and the 1,070‐passenger Crystal Serenity (launched in 2003).