Azzura Marine Nowra Impacted by Economic Downturn

19th October 2009

Amidst the global economic downturn and its impact on the luxury yacht building industry, Australian yacht builder Azzura Marine, has undertaken a detailed review of its operations.

The wholly owned subsidiary of Azzura Marine, Azzura Marine Nowra Pty Ltd has been most severely impacted by the decline in boat orders. This has resulted in the decision to cease Nowra operations and place that entity into creditor's voluntary liquidation.

"In line with the world's luxury boat industry, we have been significantly impacted by the economic crisis. We have experienced a decrease in demand for yachts over the last six to 12 months, and we simply do not have the financial resources to maintain three ship building facilities," a company spokesperson said.

Azzura Marine Nowra is sub-contracted to build the internationally acclaimed all-carbon performance cruising yacht brand, Marten Yachts. In 2008 the brand celebrated its most successful year to date, with five Marten 49s and two Marten 67s sold. In contrast, 2009 has produced zero new build contracts. Currently one Marten 67 (hull #2) is under construction while Marten 49 (hull #15) was launched last week.

"We are currently assessing our options in relation to our other operating entities (Azzura Marine Gold Coast Pty Ltd and Azzura Marine Newcastle Pty Ltd) to evaluate the best outcome for our stakeholders. This includes options for the successful completion of current projects," confirmed the spokesperson.

Over the past five years Azzura Marine's shareholders have pursued an aggressive expansion strategy and have significantly invested in the development of equipment and facilities to deliver world class yachts in addition to a range of quality marine services including; in-house design, innovative refit and repair solutions, customised interior fit out and furniture craftsmanship, a comprehensive brokerage division and specialised customer service centres.

Internationally recognised for the construction of premium quality yachts, the group and has built in excess of 200 vessels across its three Australia-based facilities. The company was established by combining decades of boat building experience, world class facilities and state-of-the-art equipment with the unrivalled skills, passion and experience of its team to produce three of the world's most prestigious nautical brands; Azzura Yachts, Marten Yachts and SRC Yachts (formerly Sydney Yachts).

Other high profile builders affected by the global downturn have included Australian yacht builders Riviera and Warren Yachts, in addition to a string of international builders.

Deloitte Touche Tohmatsu (David John Frank Lombe and Simon John Cathro) has been appointed liquidators of Azzura Marine Nowra Pty Ltd.