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Bavaria Yachts’ post-insolvency strategy includes bringing all newbuilding work back to its German base, reducing its dependency on temporary workers and focusing on a smaller, more manageable number of yacht types


Bavaria Yachts was acquired in September 2018, securing 800 jobs: Dr Tobias Brinkmann is pictured far left, with incumbent managing director, Dr Ralph Kudla, second left


made in Germany” ethos – is shaping Bavaria Yachts’ plans for future success, as the yard recovers from the rollercoaster ride that was 2018. In April last year, the builder was legally


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ordered into self-administration, beginning a period of uncertainty and job fears that lasted until September, when a private equity fund advised by Berlin-based investment company CMP Capital Management- Partners acquired Bavaria Yachts’ entire business, thus saving an estimated 800 jobs in total. Tis tally included some 550 workers in Bavaria Yachts’ Giebelstadt HQ in Würzburg, Germany, plus the 250 employees of the group’s Bavaria Catamarans subsidiary, based in Rochefort, France. Saluting these employees’ efforts, Dr Tobias


Brinkmann, who served as Bavaria Yachts’ managing director during the administration process, has commented: “The fact that we built 220 boats together under difficult conditions in the insolvency proceedings, and that the workforce remained loyal to us throughout this lengthy period, demonstrates two good characteristics of the shipyard.”


In-house approach Naturally, Bavaria Yachts is keen to avoid a repeat of last year’s drama, and so the company is revamping its practices, across the board, to guard against future financial instability. Tis ‘Made in Giebelstadt’ approach will see all sailing and motor yachts produced


streamlined, in-house approach to handling newbuild projects – including adoption of a “100%


at this location. For example, boatbuilding work that was previously subcontracted to a facility in Croatia – including production of Bavaria Yachts’ R55 motor yacht – has been taken in-house, and all moulds and tools at the Croatian site have been transported back to Giebelstadt. Bavaria Yachts also intends to set up


interdisciplinary teams at the yard. “We want our employees to develop and build all of our yachts primarily under our own management,” says Erik Appel, chief operating officer, claiming that the builder intends to grow its pool of full-time workers while reducing its reliance on temporary personnel. As for Bavaria Catamarans, the plan


is for that entity to go forward under the Nautitech banner. While this group will continue to collaborate closely with Bavaria Yachts, each company will now boast a distinctive, separate commercial identity.


Changes in the range As part of the streamlining effort, some of the models in the group’s portfolio will be scrapped, bringing a current range of 26 yacht types to between 10 and 12 by the end of 2021.


Production of the group’s R55 motor yacht, previously subcontracted to a facility in Croatia, has now been brought in-house


For example, the 19.45m × 5.4m C65


sailing yacht model – “presented in 2018 but not successful”, Baltic Yachts candidly states – has been discontinued, as has the E-Line series of pure- and hybrid-electric yachts. Meanwhile, the C50 sailing yacht,


which features an overall length spanning 15.4-16m and a breadth of 5.05m, has undergone a design and engineering overhaul. So too will the group’s flagship, 16.73m × 5.28m C57 model, as well as its 13.98m × 4.49m C45 type. “Moderate new developments are planned


from 2019,” the company has announced, adding that “two or three new product launches per year are feasible for a shipyard”. And, as mentioned, the 17.69m × 4.66m R55 motor yacht class will now be produced exclusively at Giebelstadt. Described as Bavaria Yachts’ largest motor yacht concept to date, the R55 features Volvo IPS propulsion units and Zipwake’s trim system, for improved fuel economy and range.


Back on track The group acknowledges that recovery might take some time, predicting: “In the first financial year, and as a result of ramping up production, Bavaria will show a loss, which CMP will bear as the investor.” Instead, the company anticipates hitting


the break-even phase in the financial year spanning 1 August 2019-31 July 2020. A new managing director, Dr Ralph Kudla – a partner at CMP – was appointed in early Q4 2018, and he has pledged to also create a “dealers’ advisory board” so as to involve the yard’s dealers “more closely in strategy and product development”. SBI


Ship & Boat International January/February 2019


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