Last hurdle cleared in privatization of Elefsis Shipyard; Onex Group to reopen industrial unit

An Athens first instance court on Thursday paved the way for the restructuring and reopening of the insolvent Elefsis Shipyards, west of Piraeus in western Attica prefecture, under a plan submitted by the ONEX group last November.

The plan was supported by all parties with a stake, such as the shipyards’ union, creditor banks and the Greek state.

In an announcement, ONEX, which owns and manages a smaller shipyard on the Cyclades island of Syros, said the court decision marks a new chapter for the shipyard and the entire shipbuilding and ship-repair sector in the east Mediterranean country.

ONEX added that it has already invested more than 20 million euros for the Elefsis yard.

Following the development, a bond loan worth USD 125 million, issued by US International Development Finance Corp. (DFC), will be granted to ONEX.

Highlights of the plan include:

• An immediate investment of USD 170 million in the shipyard.
• The safeguarding of all existing jobs (600).
• The payment of 41 million euros in outstanding debts to third parties and arrears to employees.
• A pledge to create 1,400 new jobs over the next three years, bringing the total workforce to 2,000.
• Estimated revenue of 1.1 billion euros for the Greek state over the next 25 years from direct and indirect taxes, as well as social insurance contributions.
• An addition boost for the local economy from an estimated 1.6 billion euros allocated to domestic suppliers and industrial units.