Published On: Mon, Apr 25th, 2016

Damen and CDM Holding sign letter of intent towards strategic partnership

Pic 1 LOI CDM & DAMENWILLEMSTAD - Recently, Damen Shiprepair & Conversion Holding B.V. and CDM Holding S.A. signed a letter of intent (LOI) in which the parties capture their intention to achieve a strategic partnership. The LOI was signed by the Managing Director of Damen Shiprepair & Conversion Holding B.V. (Damen), Mr. Durk-Jan Nederlof and Managing Director of CDM Holding (CDM), Mr. Getmar Caldera in the presence of the Minister of Economic Development Eugene Rhuggenaath. The LOI is an important step in the negotiations between Damen and CDM to achieve a strategic partnership which ensures a sustainable future for the Dry Dock.

A strategic partnership brings a number of advantages. Not only securing employment because it takes over the CDM permanent staff, but it also retains their accumulated labor rights. It also provides flow opportunities for youth through CDM’s training center. A strategic partnership with Damen means that the CDM has the opportunity to attract fresh capital to invest in its infrastructure. The strategic partnership creates a floating dock so the capacity for ship repairs will increase by about 30%. The government also remains the owner of all assets.

Already in 2009, DAMEN was chosen in a public tender as an ideal partner for the CDM.

A partnership also offers next to above advantages, several DAMEN-specific advantages. DAMEN is respected worldwide and has a good reputation in the field of management of dry docks. DAMEN provides access to specialized knowledge and resources and the ability to improve the operational efficiency of CDM thanks to advanced management instrumentation developed by their experience as a operator of dry docks. The following applies specifically to their experience in taking over dry docks on acquisition in similar condition as the CDM now. Furthermore, the company is known for its human centered corporate culture, which is something that has been validated by a delegation from the CDM Executive Board and union when visiting some of DAMEN shipyards. This manifests itself in additional training possibilities and even international exchanges for existing staff. A partnership with DAMEN also means that new maritime and related industrial activities can be developed in the future.

The government has created a multidisciplinary team to conduct negotiations with Damen. This team among others consists of specialists in finance, law, business, and communications area. Negotiations with DAMEN are progressing well, and will now focus on the details of a concession contract. In parallel to the negotiations, actions are taken to ensure that the CDM soon can make a healthy new start towards a sustainable future. This includes dealing with CDM’s debts to government entities (including the tax authorities, as well as the Curaçao Port Authority), banks and other creditors.

It remains essential that all stakeholders cooperate to form a strategic partnership with DAMEN and to assure CDM a sustainable future.


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