Once a fading relic of Greece’s industrial past, the Elefsina shipyard is poised for a dramatic revival, thanks to a $125 million lifeline from the United States via Delphos, as the financial advisor, according to Times of Malta.
Global finance advisory firm Delphos and law firm White & Case advised the U.S. International Development Finance Corporation (DFC) on the landmark loan to ONEX Elefsis Shipyards and Industries, a deal hailed as a bulwark against regional energy insecurity and a strategic step toward revitalizing maritime infrastructure in southeastern Europe.
The financing is expected to transform the shipyard into a high-capacity maritime and energy hub capable of servicing up to 200 ships annually, including liquefied natural gas (LNG) carriers. It will also integrate renewable energy with a new 30MW solar plant to power operations and support the local grid.
Bart Turtelboom, Chairman & ceo of Delphos commented: “This transaction illustrates how strategic infrastructure, supported by well-structured financing, can serve national industry and broader regional objectives. Strengthening Elefsis Shipyards revives a key industrial asset in Greece and enhances Europe’s capacity to secure and service energy supply chains. It’s a strong example of how public and private capital, working in alignment, can deliver long-term economic and geopolitical resilience.”
The Elefsina shipyard, operational since 1969, had faced financial challenges, accruing debts exceeding €423 million. The DFC’s financing is set to revitalize the facility, expanding its capacity to service up to 200 ships annually, including liquefied natural gas (LNG) carriers. This expansion is particularly strategic, given the shipyard’s proximity to the Revithoussa LNG terminal and key gas trade routes in the Mediterranean and Aegean seas.
DFC Ceo, Scott Nathan, said investment in the Elefsina shipyard is expected to develop a maritime and energy supply hub that will create jobs in Greece and help the country avoid overdependence on Russian energy. “DFC is proud to advance this high-quality infrastructure project that will generate more reliable access to energy and foster greater economic growth and prosperity for our partners across the region.”
The modernization project also includes sustainable initiatives, such as installing a 30MW solar farm to supply energy to both the shipyard and the local grid. Additionally, portions of the shipbuilding infrastructure will be repurposed for the fabrication and assembly of wind turbines, aligning with Greece’s renewable energy goals.
U.S. Ambassador to Greece George Tsunis highlighted the broader implications of the investment, noting that the partnership between ONEX and DFC is expected to create up to 1,000 jobs and restore Elefsina as a world-class maritime center. “I am thrilled to help launch the ONEX Shipyards and DFC’s $125 million partnership to reopen and rehabilitate Elefsina Shipyard,” said Tsunis. “Together, the U.S. and Greece are restoring Elefsina as a world-class maritime center, creating up to 1,000 jobs and shared prosperity for our countries through transparent partnerships.”
This development is part of a broader strategy by the U.S. and its allies to strengthen global infrastructure through transparent and high-standard investments, countering efforts by other nations to expand their influence in critical regions.
According to DFC’s public statement, the Elefsina project aligns with the Partnership for Global Infrastructure and Investment (PGII) goals, a G7-led initiative launched to promote sustainable, transparent investments in emerging markets. As the U.S. government’s development finance institution, the DFC has increasingly focused on strategic assets that support economic development and geopolitical resilience.
ONEX’s acquisition and planned rehabilitation of the Elefsina shipyard, following its successful turnaround of the Neorion shipyard in Syros, signifies a commitment to reviving Greece’s shipbuilding industry. Once fully operational, ONEX Elefsis Shipyards aims to become the largest shipyard in Greece, serving both the Greek Navy and commercial fleets.
In 1997, the Elefsina shipyard was acquired by Neorion. Its operating situation briefly improved, but then it further fell into difficulties due to debts and dilapidation. When the shipyard applied for bankruptcy, its debts exceeded US$460 million.
In 2019, ONEX completed the acquisition of the Elefsina shipyard and is committed to restoring the shipyard’s production capacity and achieving comprehensive revitalization. ONEX plans to develop the shipyard into one of the largest shipyards in Greece, restarting its shipbuilding business and providing services to the Greek Navy and merchant ships. In the following two to three years, the shipyard mainly provided ship maintenance services for the Greek Navy and obtained contracts for building two ships. In November 2022, after a five-year hiatus, the Elefsina shipyard received its first merchant ship maintenance contract, being responsible for the maintenance of the 56,500 DWT bulk carrier “Star Cleo”.
In April 2023, after being out of operation for many years, the Elefsina shipyard completed the hoisting work of Dry Dock No. 1. In July, it completed the renovation and upgrading of the Panamax dock, becoming one of the most modern and largest Panamax docks in the eastern Mediterranean. It can accommodate Panamax ships (with a maximum length of no more than 294.13 meters, a width of no more than 32.31 meters, a draft of no more than 12.04 meters, and an average deadweight of 65,000 tons) and is equipped with an intelligent management system, enabling a series of ship maintenance operations. This is also a key step in the strategic upgrade of the shipyard’s construction capabilities.
It is worth noting that in addition to the financing from DFC, ONEX has reached a cooperation agreement with the Italian shipbuilding group Fincantieri to support the revitalization of the Elefsina shipyard. The shipyard will become a supplier of Fincantieri and obtain support from Fincantieri on a series of projects. Firstly, it will build at least two light frigates for the Greek Navy, with an option to build a third one. The Elefsina shipyard plans to expand its production capacity by constructing new production lines and other facilities, thus being able to participate in complex frigate projects. Fincantieri will also support the development of the maintenance, repair, and overhaul capabilities of the Greek Navy and the commercial shipping industry.
It is noteworthy that as early as 2014, the Greek government expressed its welcome for Chinese shipyards to invest in Greece to address the distressed shipbuilding and repair industry. To this end, it twice attempted to sell the Elefsis shipyard to China COSCO Shipping Group. It is reported that the shipyard has a favorable geographical location, being adjacent to several major natural gas trade routes and close to the Piraeus Container Terminal operated by China COSCO Shipping Group. However, according to Greek media reports, due to issues such as legal disputes of the shipyard, Chinese shipbuilder ultimately chose to give up the acquisition.