Fincantieri

The newest name on the ever-changing face of Sturgeon Bay shipbuilding

Jon Gast

The face of Sturgeon Bay shipbuilding, and its ownership, has changed significantly over the past four decades, even accelerating in the last 15 years.

Construction ceased at Peterson Builders, Inc. in the mid-1990’s. Its former shipyard is now a residential-marina development set against a waterfront park. While gone, it leaves a legacy as one of the country’s most versatile shipbuilders.

Palmer Johnson, Inc. retains a reputation as one of the world’s premiere yacht builders. The recent expansion of its construction facilities in downtown Sturgeon Bay came under new ownership that had rescued the company out of bankruptcy and raised hopes for a new era of yacht construction in the city despite the challenges of the economic recession.

However, the heart and much of the history of the city’s shipbuilding story rest on the waterfront just north of downtown. It’s property that was home to such prominent shipbuilding firms as Leathem Smith Shipbuilding, Sturgeon Bay Shipbuilding & Dry Dock and Christy Corporation, to name a few. The expansive waterfront acreage consolidated under one owner in the late 1960’s when Manitowoc Co. purchased it and branded the name Bay Shipbuilding Co. onto the city’s considerable shipbuilding legacy.

Its contributions over the succeeding four decades have been as large as the yard and the mammoth boats it would construct and maintain. But its ownership retained a distinctive local flavor with Manitowoc headquartered just down the road in the city for which it is named.

It all changed on Jan. 1, 2009 when Manitowoc Company’s Marine Group was purchased by Fincantieri, an Italian shipbuilding company. After hearing the news, the local population struggled as much with the impact of such a significant sale as it did pronouncing its lyrical name.

For the past two years, Sturgeon Bay has begun to settle in with its new immigrant. Many are encouraged by the physical improvements the company has made to the yard. But, seemingly, much of the local populous remains ignorant of what Fincantieri is and does.

Thousands of miles cloud its significance for Fincantieri is not only the largest shipbuilder on the Mediterranean but a world leader in the construction of cruise ships. The purchase of Bay Shipbuilding, Marinette Marine on the other side of the bay, Cleveland (Ohio) Ship Repair and Ace Marine in Green Bay has swelled the number of Fincantieri’s shipyards to 12, eight of which are in Italy. The company also has a couple of design centers employing some 500 design engineers and technicians, a research center and two production sites for systems and mechanical components. Engine construction is handled under a separately owned subsidiary. The company employs 8,750 people in Italy which swells to 30,000 when sub-contractors are factored in. The new American subsidiary, which goes under the title of Fincantieri Marine Group, has added another 1,650 employees. Its size and scope can be difficult for a small Midwestern town to comprehend.

But Umberto Vianello does his best to try and explain the significance of his company, its history and its possible impact on America, especially for those components nestled together on the shore of Green Bay.

A native of Venice, Vianello joined Fincantieri 10 years ago after a 21-year career in the Italian Navy. He has risen through the ranks, undertaking and
overseeing significant shipbuilding projects to a point where he played a
considerable role in the Manitowoc Co. marine holdings purchase. He was
transferred to Wisconsin to help oversee it in his role as Chief Engineering
Manager and has an office in Green Bay.

Door County is rightfully proud of his shipbuilding history, but with a script that dates back to more than a century and a half, it is merely a digest of the volume that constitutes ship construction in Italy.

“The Italian shipbuilders can boast an antique tradition that dates back to the magnificence of ancient Rome,” is how Fincantieri sets the foundation to its history. “Craftsmanship of shipbuilding is very old and was mastered first by the Romans in order to extend their Empire to the four corners of the earth.” It fires out big-time names like Columbus, Vespucci and Leonardo de Vinci when emphasizing it mastery of the seas.

But Fincantieri is hardly that old, being founded in 1959 as a state financial holding company. It wasn’t until 1984 that Fincantieri blossomed as a “fully independent company,” explained Vianello. It isn’t until Vianello actually breaks down the components of the company that one fully begins to appreciate the scope of the firm.

“There are three main business segments of the company,” he said. “There is the merchant and cruise division, the military division and most recent mega yacht division.”

The company is probably best known for its cruise ship construction. Its yards in Genoa, Venice and Trieste were world leaders a century ago and today it’s a good bet that if you’ve taken a cruise you’ve been on a Fincantieri ship. Nearly all of the big cruise lines have Fincantieri-built liners – yes, even Carnival.

The mega yacht business is essentially a new endeavor for Fincantieri. Vianello said the division began just four years ago and this past September it launched its first creation when Serene slipped into the water at La Spezia, Italy. At 134 meters, the vessel translates to 440 feet. “It’s much like a (naval) frigate,” said Vianello, describing its size. “It’s a big yacht.” Big enough for seven decks, two helipads, a saltwater pool that doubles as a docking station for a personal sub and tenders. Try to grasp this: There is over 29,000 sq. ft. of interior living space devoted to the owners and their guests.

But it’s the military construction wing of the company that will have the most immediate impact on Wisconsin’s yards with the development of the first Freedom class littoral combat ship (LCS) built at Marinette Marine. The recent awarding of 10 more of these 377-ft. coastal warships to Fincantieri Marine Group fulfills the primary objective of Fincantieri’s investment in the United States.

“The LCS program was the main drive for our interest in purchasing (Manitowoc’s) assets over here,” said Vianello. “There is a long history between Fincantieri and the LCS program. We built 12 boats similar to the LCS. We still have the blue ribbon for the fastest crossing the (Atlantic) ocean. That boat was only 67 meters (219 ft.) but the shape of the boat was the same as the 12 boats we would do later.”

Vianello said timing played the biggest role in the purchase of Manitowoc Company’s marine assets.

“They were ready to disinvest and we were ready. It was the right time, right situation, right moment I guess for everyone,” he said, admitting Fincantieri originally only had eyes for the Marinette yard. “We were focused on the LCS program and the Marinette shipyard. Actually, we asked Manitowoc for only that one but Manitowoc said ‘no, no, no, no. It was all or nothing.’

“We didn’t know too much about Sturgeon Bay. Everything was based on Marinette,” further explained Vianello. “Sturgeon Bay was a wonderful surprise. We got what in my opinion was a wonderful marriage gift which is the Sturgeon Bay shipyard. It has great, wonderfully skilled people and good facilities – especially the graving dock of which there are very, very few in the northern continent of America.

“Sturgeon Bay is a wonderful shipyard for the repair business,” he continued. “They should have more new construction, but due to the downturn in the economy they don’t have anything new, but it’s in a good position in the market. The yard is well known by many customers and with the economy recovering we are confident that quite soon we will have a good surprise for Sturgeon Bay.”
DCM