Negotiations over sale of Syros island shipyard in the end of October

Negotiations between the Onex group and the Greek government over the purchase of the troubled Syros island shipyard are expected to begin at the end of the month, with the main issue touching on the number of installments the former will make to cover the industrial unit’s arrears to the state.

Reports of interest in the shipyard on the homonymous Cyclades island had in the recent past reached as far as Russia, China and even Korea, with several Greek ship owners also mentioned at various times. Nevertheless, only Onex submitted a bid for the shipyard, the third largest in the country.

According to initial figures to see the light of day, an agreement would see Onex assuming obligations of 40 million euros, on top of pledging to funnel an additional 20 million euros in investments for upgrades at the unit. The maturity of arrears would be extended over a period of 30 years, in order to render the investment as viable.

Onex is reportedly interested in utilizing the shipyard to enter the luxury yacht sector, building special purpose vessels and floating docks, as well as coastal and ocean-going platforms. Other areas on the horizon are on support - safety management etc, refits, spare parts management and training.

A business plan submitted by the company lists guaranteed contracts with clients of more than 25 million USD during its first year of managing the shipyard.

Onex is headed by Greek-American executive Panos Xenocostas.

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Photo Source: Wikimedia Commons Copyright: Bild-by Hans Peter Schaefer License: CC-BY-SA

Source: naftemporiki.gr