Tyovene secures vessel deal to Scotland with the help of Finnvera’s export credit – Offshore wind power creates increasing demand for service vessels

The proliferation of offshore wind farms has increased the demand for new types of service vessels that can be used for wind turbine maintenance tasks in sea conditions. In autumn 2023, Uudenkaupungin Työvene Oy entered the offshore wind power market after the UK-based shipping company Maritime Craft Services placed an order for three new service vessels. The deal was clinched with the help of buyer financing that utilised Finnvera's export credit scheme.

The first vessel is set to be delivered to Maritime Craft Services in spring 2025. The deal strongly supports Tyovene’s growth aspirations. The company’s current turnover is approximately EUR 15 million, and according to CEO Juha Granqvist, its net sales and profits are set to grow between 2024 and 2025. At the same time, the deal represents a significant opening to the offshore wind market, which is growing strongly around the world, including in Europe.

“Several licences have been granted for new offshore wind farms in the Baltic Sea region, and this growth will accelerate towards the end of the decade. These wind farms will require a lot of new equipment, both during construction and when they’re in use. This is a great opportunity for smaller newbuild yards such as Tyovene,” Granqvist explains.

Tyovene is part of the Nordic Yards Group, which is co-owned by Baltic Workboats from Estonia. The Group's goal is to grow both organically and through strategic corporate acquisitions, and it aims to increase the Group’s turnover to EUR 100 million by the end of the decade. 

“The majority of Tyovene’s deliveries are sent abroad. Currently, we’re putting the final touches to a 23-million-euro suction dredger that will be delivered to Poland,” says Granqvist.

The new vessels strengthen the buyer’s position as a supplier of service vessels for demanding offshore wind farm conditions

The twin-hull SWATH vessels that will be delivered to Scotland feature superior maritime characteristics compared to any conventional catamarans. 

According to Granqvist, the vessels’ operational potential in North Sea conditions is approximately 100 days longer than that of similar catamaran vessels.

“Offshore wind farm sites are being built further offshore, which is why the key requirements for our SWATHs are high speed, passenger comfort, and reliability.  It’s also very important to introduce greener technology with any new build. Therefore, we wanted to futureproof these vessels by including hybrid-ready propulsion. We also upgraded their engines from Tier III to EU Stage V, to lower the vessels’ emissions and improve their carbon footprint,” says Nikki Kuyt, Managing Director of Maritime Craft Services.

Hybrid readiness means that the vessels can be modified later to use alternative power sources and even be fitted with batteries that use zero-emission energy. 

Maritime Craft Services was founded in 1977 in Largs, Scotland, and specialises in tugboats, workboats and crew transfer vessels. Its current co-Managing Directors are Menno Kuyt and Nikki Kuyt, the son and daughter of founder Dirk Kuijt. The shipping company has been active in the offshore wind market since 2002. This latest order will increase the size of its fleet to 20 vessels and secure the company’s position as a leading supplier of high-quality personnel transport vessels in the offshore wind power sector.

“All of our key markets are currently very busy, and this looks to continue for the next few years, hence our decision to the place the order for three new SWATHs. We purchased one newbuild multi-purpose workboat in November 2023, and we’re considering opportunities for a further one or two new units within the next 48 months.  We expect our three SWATHS to increase our revenue by EUR 6 million per annum, and we’ll require approximately 40 additional personnel to operate and support the vessels.”

The 29-metre vessels have a carrying capacity of 30 tonnes and can accommodate up to 24 service technicians, and can reach a top speed of 22 knots. Illustration of the vessels to be delivered.

Export credit is crucial for buyers – financing improves the chances of smaller export projects and companies

While the buyer did not know Tyovene beforehand, it was familiar with Nils Olschner, Tyovene’s Director of Sales and Business Development, who became the unifying link between the two parties. The buyer was very impressed with Tyovene’s team and facilities.

Very soon after their initial discussions, Tyovene highlighted Finnvera’s export credit as one opportunity for arranging the deal's financing. Nikki Kuyt describes the export credit as a vitally important factor.

“For us, Finnvera has been crucial to signing the deal with Tyovene, as it’s unlikely we could have financed the build process from other sources.”

Finnvera’s export credit is credit that is provided to foreign companies that purchase Finnish capital goods, such as machinery, equipment and production facilities. In most cases, these companies also act as the end-users of these goods. The maximum amount of export credit is EUR 20 million. 

“It can be extremely difficult to arrange buyer financing for any export transactions of this calibre. Our export credit is designed to improve the availability of financing and promote the exports of Finnish SMEs,” explains Finance Manager Sakari Juntti from Finnvera.

When an export company is preparing a deal that will require a payment period of over two years, and notices that its foreign buyer is interested in different financing methods, Finnvera’s export credit can help it cross the finishing line. 

“You should always remain alert when a discussion turns to financing, and especially when it seems that a deal may fall through due to inadequate financing. Even a good buyer may want to expand their financing base with the help of export credit, even if they have access to domestic financing sources,” notes Sakari Juntti.

Certain sectors, such as the shipping company industry, have become accustomed to utilising the financing provided by export credit agencies. This type of financing also helped implement the financing process for Tyovene’s deal. 

The exporting company must apply for the export credit on their buyer’s behalf. By providing information on their buyer’s financials and owners, the exporter can help speed up the processing of the application at Finnvera. The buyer’s country and the associated risks are also essential for the application process.

“The most important thing, however, is that the exporter should never hesitate to contact us whenever they have any questions. We’re happy to help, and we can participate in the discussions with the buyer at an early stage.”

Both Työvene and Maritime Craft Services wish to praise their collaboration with Finnvera.

“So far, all our trade and communications with both Tyovene and Finnvera have gone very well. We’ve been very impressed with the speed of their decision-making, and everyone has been very professional and pleasant to work with,” says Nikki Kuyt.

Juha Granqvist believes that export credit serves as additional leverage for pursuing one’s growth potential. 

“It has provided us with completely new opportunities and improved our competitive standing with our foreign competitors, as we’re now able to arrange the necessary financing along with our products. Our customers also see this as a very interesting option.” 

Fact box:

• Name of the Exporter: Uudenkaupungin Työvene Oy
• Name of the Lender: Finnish Export Credit
• Name of the Buyer and Borrower: Maritime Craft Services (Clyde) Ltd
• Project/Export transaction/Goods: Crew Transfer Vessels
• Country of Export transaction/project: Great Britain

More information on the topic:

How Finnvera's export credit works – read more.

About the companies:

Uudenkaupungin Tyovene 

Maritime Craft Services