Eriksbergs Mekaniska Verkstads Aktiebolag
List of Deals
Eriksbergs Mekaniska Verkstads Aktiebolag was incorporated under the laws of Sweden in 1897. The company went on to become one of the oldest and largest shipbuilders in Europe. Located in Gothenburg, Sweden, the company was a wholly owned subsidiary of the Tirfing Steamship Company. The Tirfing Steamship Company owned and operated, through subsidiaries, the Swedish American Line, the Swedish Orient Line, the Swedish East Asia Company, and other shipping companies that were known as the "Bostrom Group." In 1966 the Bostrom Group owned and operated eighty-three ships that had an aggregate capacity of over one million dead-weight tons.
The company's business was the construction and repair of ships and the manufacture and installation of diesel engines in ships. The history of the company dates back to 1853, when sailing vessels were being repaired by its predecessor. It was in the latter part of the nineteenth century that construction of steel vessels began. In 1873 the company's first ship, a tug, was built. Over the years and through September 1966, the company built and delivered 493 ships equaling an aggregate of over 5 million dead-weight tons. The largest single ship built by the company as of 1966 was a turbine tanker of 97,000 dead-weight tons, delivered in 1963.
Competition in this industry was extreme. The existence of shipbuilding companies far surpassed the demand. There had at one time been a demand that had resulted from the need for tankers caused by the Suez Crisis in 1956, but once that demand abated, prices for ships weakened and other selling terms, including credit, became more popular to ship buyers and less favorable for shipbuilders.