MSC Cruises and Palumbo Group announced the formation of a joint venture to operate the Palumbo Malta Shipyard.

This will see MSC Cruises take a 50 per cent stake in the shipyard and become an equal partner alongside the current owner, Palumbo Shipyards, which has become an international centre for shipping repairs over the last 10 years.

The partnership will pave the way for a major upgrade for the shipyard, to enhance every aspect of its operations as well as intensifying its specialist cruise line focus. Capital expenditure has already been committed to improve the operational and environmental efficiency of the shipyard.

In a statement, the companies noted that Palumbo Malta Shipyard will receive custom from MSC Cruises’ vessels, as well as from MSC Group cargo ships and ferries, while continuing to serve the shipyard’s loyal clientele.

“The new joint venture will generate significant economic benefit for Malta including huge demand for local specialist suppliers to support the shipyard,” they said. “Of note will be the potential introduction of cutting-edge technology to allow servicing and repair of the next generation of LNG powered cruise ships being built for the MSC Cruises’ fleet.”

LNG is the greenest and most environmentally friendly maritime fuel currently available. This will support MSC Cruises’ objective of achieving zero environmental impact operations as part of its drive towards a more sustainable cruise line industry, they maintained. 

Pierfrancesco Vago, Executive Chairman at MSC Cruises, said the announcement represents a strengthening of the company’s ties with Malta, “where we have five of our ships registered and plans for all our newbuilds to sail under the same flag. We look forward to the economic benefits this joint venture will generate for Malta, and to the professional service and repairs our vessels will receive.”

Antonio Palumbo, the founder and Chairman of Palumbo Group, added the joint venture is not just a financial transaction but is aimed at strengthening the Group’s network.

“I am sure that the future will prove us right, leading this shipyard to consolidate itself as one of the most important multi-purpose structures in the markets of cruise, merchant and advanced-technology ships, providing refitting services, general maintenance and installation of eco-friendly systems where Palumbo Shipyards already holds a leading position. Not least, the whole Maltese community will benefit from a new economic boost,” said Mr Palumbo.