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STX: Gov’t financing comes up short

The STX Finland shipyard says the government’s 44 million euro cash injection falls short of the 50 million it needs to help secure a cruise liner project.

Viking Grace -alusta rakennetaan STX:n Turun telakalla.
Critics say operations will wind down at the STX shipyard in Turku once the Viking Line Grace passenger ferry is completed. Image: Yle

STX Finland's chief shop steward, Jari Aalto, said the Turku shipyard is likely to lose the cruise liner order to STX Europe in France.

"We would have needed the 50 million euro loan," he said.

The government on Friday agreed to grant 44 million euros in innovation support funding to the STX Finland shipyard if the South Korean group wins a 1 billion euro cruise ship deal from Royal Caribbean. The sum is the largest ever innovation support package granted for the construction of a single vessel.

According to Aalto, STX Europe in France has better package to offer the customer.

The Finnish Metalworkers' Union also expressed disappointment at the decision. It said a potential order loss now could harm the shipyard’s ability to attract customers in the future.

It's estimated the new deal would employ some 20,000 person-years -- a favourable development in an otherwise slow economy.

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