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

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.