TT-Line statement re Flensburger Schiffbau-Gesellschaft

TT-Line statement re Flensburger Schiffbau-Gesellschaft

7 February 2019

Recent industry media reports from Germany have noted that the Flensburger Schiffbau-Gesellschaft (FSG) shipyard is in a "difficult financial situation".

Chairman Michael Grainger said TT-Line Company Pty Ltd was in “close discussions with the ship builder about any potential impact on TT-Line.”

“We continue to have solid contracts in place with FSG to build the new Spirits of Tasmania, and the detailed ship design work is progressing as planned,” he said.

“Importantly, there is no exposure to TT-Line or State funds under the current contracts and no payments have been made to date.

“In the event of any delay, the current Spirits of Tasmania vessels will be emissions compliant from 2020 and can continue to operate past 2021.”

Mr Grainger said it was not unexpected for a ship builder to experience cash flow problems.

“In preparing a business case for the Tasmanian Government to select FSG to build the new ships, TT-Line exhaustively assessed vessel types and fleet configurations to determine the most suitable vessels to operate daily crossings on Bass Strait,” he said.

“The company engaged solicitors and accounting firms in Europe to undertake full due diligence on all ship yards shortlisted.”

FSG was endorsed by the TT-Line Board after the company short listed a number of international shipyards to build the new vessels.

FSG is a highly respected and experienced ship builder that has constructed more than 750 vessels ( since it was established in 1872.