Flensburger Schiffbau-Gesellschaft (FSG) has announced it will suspend its operation from Thursday due to the coronavirus pandemic.
Like many other countries, the German government has tightened border control and imposed travel restrictions while encouraging remote working to control the spread of the Covid-19 coronavirus.
With those measures affecting FSG’s subcontractors and suppliers as well as workers and shipping company representatives at the yard, its production will be temporarily suspended from Thursday, according to a press release.
"We are taking these measures to provide the best possible protection for the people working at our shipyard,” managing director Alex Gregg-Smith said.
“It is our aim to restart once the acute coronavirus threat has ended and to get operations back up and running again as quickly as possible. By taking this action now we believe that the interests of all parties are best protected".
In accordance with the German welfare system, the Federal Employment Agency is expected to provide salary to yard workers during the suspension period.
Clarksons’ orderbook data shows the Flensburg-based yard is building one 11,900-dwt ro-ro for Siam Industries, one 1,680-passenger ro-pax for Brittany Ferries and one 1,800-passenger ship for Irish Continental.
All of them are due to be delivered this year.
FSG did not immediately reply to an email seeking comment on whether any force majeure would be declared.
Earlier this week, Italian cruiseship builder Fincantieri said it would suspend production for two weeks from 16 March as a coronavirus containment measure.
Italy is the pandemic's worst hit European country with more than 31,500 coronavirus patients, while Germany has 11,300 confirmed cases.
Before the suspension, FSG had already been struggling over the past couple of years to complete ships on time, with management issues, a lack of performance by subcontractors and an absence of yard finance.
In February, Tasmanian state-owned TT-Line’s cancelled its order for two 48,000-gt ropax ferries at FSG, citing construction delays and uncertainty over yard finance.
