ONEX Undertaking Second Phase of Expansion of Greek Shipyard at Syros

The U.S. equity firm ONEX outlined its second phase of investments in its Greek shipyards while hosting a visit by the Greek Minister of Development Takis Theodorikakos at the Neorion Shipyard on the island of Syros. The company has been pursuing the revitalization of Greek shipbuilding and repair at its two yards, Syros and the Elefsina Shipyard near Athens.

The company highlights that it is working to develop a multi-functional industrial hub in the Aegean. It is expanding services and capabilities for commercial shipping and also looks to participate with the energy and offshore sectors.

ONEX Shipyards is launching a new five-year investment program for the shipyard on Syros with plans to invest €14 million (US$16.3 million). It will be the second phase of the efforts that started with the rescue and reopening of the historic facility.

The Minister stressed the importance of the efforts and said the government firmly supports the investments. Theodorikakos said without the shipbuilding and repair business, it would not be possible to maintain the country’s productivity, competitiveness, and security. He noted that Greece wants to maintain a world-class naval force and to achieve this requires the industry. The Greek frigate HS Spetsai has been contributing to the EUNAVFOR Aspites protection efforts in the Red Sea region including this week’s rescue of the seafarers from the LNG tanker Falcon. ONXY and Fincantieri have agreed to efforts to build at least two corvettes with an option for a third for the Hellenic Navy.

The company highlighted that it is investing €5 million for upgrading on its floating dry dock and an additional €2.5 million for the Syncrolift. They noted that the equipment had not been operated for 20 years but it will now expand capacity. They are also modernizing the cranes at the shipyard.

Other investments are focusing on energy upgrades for the yard. They are also introducing technological improvements including robotics and hydroblasting.

ONEX is also leading the upgrading and modernization of the Elefsis shipyard which had fallen into disrepair and debt. In 2022, it was reported the yard had not received a commercial ship in five years. It undertook repairs on a Star Bulk vessel in November 2022 as it restarted work. In 2023, they lifted the Number 1 dry dock for the first time in five years. The Elefsis yard in late 2023 signed a $125 million financing agreement with the U.S. International Development Finance Corporation as part of its revitalization efforts.

Speaking about the efforts at Syros, Director General Yiannis Vamvakousis told the minister it is a holistic reconstruction of the shipyard aiming at sustainability, technological progress and securing jobs. The yard currently employs between 450 and 500 people and completes 80 ship repair and refit projects each year.