USC boosts its share in Krasnoye Sormovo Shipyard to majority ownership
United Shipbuilding Corporation (USC) has secured a RUB 3 billion credit facility to buy a 61-percent stake in Nizhny Novgorod-based Krasnoye Sormovo Shipyard, RBC reports. According to RBC, USC has closed a deal to purchase shares of the company, which previously belonged to her just over 30% of the shares.
The Corporation, which had held in ownership 30% of shares in the enterprise, closed the buy out deal thus boosting its stake in Krasnoye Sormovo to 90 percent.
Earlier, USC Board’s Chairman and Russian tycoon Vladimir Lisin said that the Corp. expects by the end of this year to increase its share in Krasnoye Sormovo to majority ownership.
Besides, USC President Roman Trotsenko said that the Company plans to inject in modernization of Krasnoye Sormovo Shipyard Rub 5 billion.
"We believe that the program will be accomplished in four years", Trotsenko said, noting that the shipyard’s specialization will remain the same.
Krasnoye Sormovo Plant is one of the oldest Russian shipbuilding companies, founded back in 1849. All vessels built at Krasnoye Sormovo shipyard meet the requirements of MARPOL conventions, having the state-of-the-art equipment.
United Shipbuilding Corporation was founded in 2007 as a 100-percent state-owned group of companies by the Presidential Decree № 394 (March 21, 2007). UCS currently incorporates three regional shipbuilding centers, nine engineering and design offices and 39 dockyards. The Corp’s largest shipbuilding assets include Kaliningrad-based JSC Yantar Shipyard, JSC Admiralty Shipyards (St. Petersburg), JSC PA Sevmash (Severodvinsk), JSC DVZ Zvezda (Vladivostok). Besides, UCS holds a 50% stake in Arctech Helsinki Shipyard, a joint venture with STX Finland Cruise Oy.
The Corporation participates in several major international projects: construction of a new mega shipyard Zvezda-DSME through a JV with Daewoo Shipbuilding & Marine Engeneering (South Korea), the construction jointly with Yantai Raffles (Singapore) of Vostok-Raffles Shipyard. In 2010, USC posted total revenue of RUB135 billion. Currently, USC consolidates about 70% of the domestic shipbuilding industry. The Group focuses on the Russian market, but also exports its products to 20 countries.
