Damen asks for compensation from Romania for termination of agreement over shipyard

Dutch company Damen submitted a claim for compensation along with the notice of termination of the agreement concluded in 2018 with Romania regarding Mangalia shipyards, Profit.ro reported.

Under the agreement, the Romanian state became the majority shareholder (51%) of Damen Shipyards Mangalia, which operates the shipyard of the same name on the Black Sea shore, and Damen remained with 49% of the capital and took control of the operational management of the company.

The reason for termination cited in August by the Dutch was that, through a law adopted by Parliament at the end of June, the companies in the special situation of Damen Shipyards Mangalia, with a majority state shareholder but with private operational control, are no longer exempted from local legislation on the corporate governance of public enterprises.

(Photo source: Facebook/Damen Shipyards Galati)