Joint venture signed between MSC and Palumbo for Malta shipyard upgrade
MSC Cruises and Palumbo Group announced an agreement to create a joint venture to manage and upgrade the Palumbo Malta Shipyard. The agreement was signed by both Pierfrancesco Vago – Executive president of MSC Cruises, and Antonio Palumbo – President of Palumbo Group. This agreement states that Palumbo and MSC have become equal partners in the management of the shipyard with MSC taking a 50% stake of the shipyard.
“This agreement is not just a financial transaction but is aimed at strengthening our network and is part of a group corporate strategy” said Mr. Palumbo.
The aim of this joint venture is to increase the production potential of the shipyard and gear up for future business realities, such as investing in technology allowing servicing and repairs of next generation LNG powered cruise ships. MSC will use the shipyard as its primary service facility in the Mediterranean allowing the shipyard to develop a specialisation in cruise ship repairs whilst continuing to service cargo ships, offshore ships and ferries.
This move will significantly enhance the competitiveness of the shipyard in the market of the Cruise ships. The shipyard will also keep servicing other customers for general repairs such as refits, maintenance and conversion services on a broad range of vessels.
Palumbo Group acquired the shipyard 10 years ago, with the facility having six docks ranging in length from 98m through to 362m plus a 430T travel lift.