Palumbo is planning to transpose its Naples experience in super yacht maintenance and building to Malta and possibly even start building boats here in the future.

Antonio Palumbo, who yesterday showed Finance Minister Tonio Fenech around the super yachts facility in Senglea, hopes to make a network in the industry from the centre of the Mediterranean.

The super yachts facility was recently passed over to Palumbo – the company that also recently won the shipyard tender for a 30-year concession.

In comments to the press, Mr Fenech pointed out this facility was the only profitable part from the whole shipyards operation. Very high quality Maltese craftsmanship is employed at the facility repairing highly expensive boats.

Confident of Palumbo’s experience in the field, Mr Fenech believed the super yachts facility will expand and create more opportunities both in terms of economic growth and employment. The facility currently employs 20 persons on full-time basis.

The super yachts privatisation tender had been issued twice with Palumbo chosen as the preferred bidder and most economical from two offers.

It will be making a €7.5 million upfront payment and paying €0.5 million in annual rent which increases by 15% every five years.

“This means a total value of €29.4 million, amounting to €14.4 million in net present value,” Mr Fenech said.

Palumbo will also be investing a minimum of €3.6 million in upgrading the same facility.

Composite Works made the other offer that included a €6.01 million upfront payment and €475,000 in annual rent that would also have increased by 15% every five years.

This added up to €26.8 million in total value and €12.6 million in net present value.

Joseph Calleja, general manager of Palumbo, said in reply to a question on the company’s plans that the company was in contact with super yacht owners and organised fairs around the world through correspondence.

The super yachts facility has a 170-metre long dock and it is one of the largest in the Mediterranean. Moreover, the covered dock No. 3 provides value added capacity for the company.

He also pointed out that in the coming weeks, a super tanker will be hosted at the Malta Shipyards generating good work for the company and its employees.