Genting Hong Kong snaps up German shipyards for $358m

Cruise ship orders are at an all-time high.

Mainboard-listed cruise ship operator Genting Hong Kong revealed that it has inked an agreement with German shipbuilding company Nordic Yards to acquire three of the group's shipyards in Germany.

The deal is worth HK$1.99 billion ($358 million). Genting Hong Kong said that it has acquired the three shipyards in order to meet robust global demand for cruise ships.

"The rapid growth of the world cruise industry, especially in China, has led to global cruise ship orders reaching an all-time high," Genting Hong Kong said in a release to the SGX.

Due to the surge in demand, Genting Hong Kong said that it faces the risk of being unable to obtain enough cruise ship building slots to meet its plans for its three cruise brands.

"In order to address this risk, it is strategic that the group acquire its own cruise shipbuilding yards to build its cruise fleet, freeing management to focus on design, planning and deployment of its planned cruise ship fleet," said the release.