Rheinmetall interested in no more than 10%-15% of Romanian shipyard Mangalia

The German group Rheinmetall, one of the largest European manufacturers of weapons and military equipment, has reconfirmed that it is analysing Romania as part of its expansion plans in the naval area, but said the Mangalia shipyard, currently for sale under bankruptcy procedures, is too big for its needs and it would be interested in only a 10%-15% stake, Economedia.ro reported.

Earlier on May 5, the German group confirmed its interest in the Romanian shipyard, which it would take over under a partnership with the maritime group MSC.

"The shipyard in Romania is a very large one. We are not interested in taking over everything there, because it is too big and we cannot use it in this way. If everything goes well, maybe we need 10–15% of the shipyard's capacity, and the rest is for container ships," said Rheinmetall CEO Armin Papperger, in a call with investors on May 8.

In related news, Mangalia shipyard’s creditors, summoned in a meeting on May 8, rejected the plan to capitalise on the company’s assets, according to Economedia.ro. The market value of the construction site is estimated at approximately EUR 184 million, while the liquidation value is EUR 84.1 million.

Other stages follow, according to the bankruptcy procedure. The liquidation schedule has not yet been set.

The creditors, among whom the Dutch group Damen holds a 97% stake, have the final word.

Interest in the Mangalia assets increased after the German group Rheinmetall AG and the Swiss company MSC Mediterranean Shipping Company announced that they were analysing joint investments in Romania, including the modernisation of the shipyard. The two companies said they are considering transforming the site into a dual-use center for civil and military shipbuilding.

(Photo source: Inquam Photos/Daniel Stoenciu)