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SCMP Reporter

THE long-awaited merger of Bremer Vulkan Verbund's shipping unit with the main shipping company of the former East Germany has been completed and, retroactive to January 1 this year.

  The merged line will have revenues of about 1.6 billion marks (about HK$7.68 billion) this year, Bremer Vulkan said.

  Rationalisation measures will result in a loss for the year, the company said.

  The merger of Bremer Vulkan's Senator Line with Deutsche Seereederei Rostock creates the DSR Senator Lines Holding, which will have dual headquarters in Bremen and Rostock.

  The merged line will operate 50 ships, including 18 owned ships, with services throughout the world.

  ''The goal is to achieve an optimisation of the services as fast as possible, a reduction in costs, and further measures to improve earnings,'' Bremer Vulkan said.

  ''It is our goal to reach break-even in 1995 if possible.''   The new line has a total equity of 200 million marks and employs 600 people, including 200 abroad.

  The new company will be provided with cash equity of 200 million marks by the two shareholders.

  They will provide another 200 marks to finance the purchase of ships and containers.

  It is expected that a break-even situation will be reached next year.

  ''With a solid capital base, the newly structured line will be in a position to enter into new partnerships and joint ventures which are necessary in today's competitive environment of container shipping,'' a company spokesman said.



Merger of German lines is completed