The Romanian government is preparing a potential full takeover of the Damen Mangalia shipyard (where it already holds 51%), with plans to convert it into a military production facility financed through the EU’s SAFE mechanism and potentially involving German defence group Rheinmetall, according to Bursa.ro. Damen Mangalia was previously managed by Damen group (49%), which pulled out, putting financial strains on the Black Sea shipyard.

The move is inferred from both a new legislative framework under preparation and increasingly explicit statements from defence minister Radu Miruță, pointing to state intervention in a strategic but financially troubled asset.

A draft emergency ordinance discussed in first reading on March 19 introduces mechanisms allowing the state to intervene directly in companies deemed of “strategic interest.” These include pre-emptive rights over shares and assets, monitoring tools, and the possibility of intervention when key industrial capacities are at risk.

The sectors targeted explicitly include defence, maritime and port industries, transport and energy – effectively covering the Mangalia shipyard.

The government’s approach suggests a two-step strategy: first, to stabilise and take control of the shipyard using the new legal tools; and second, to integrate it into defence production programmes funded at the European level.

While official statements stop short of naming a future operator, political and military sources cited by Bursa.ro pointed to Rheinmetall as a likely candidate. The German group, which has recently expanded into the naval sector, is reportedly interested in increasing its production footprint in Eastern Europe and could gain access to the Mangalia facility after the Romanian state resolves its legal and financial issues.

Such a development would align the shipyard with broader European rearmament efforts, positioning it as a regional hub for military shipbuilding, though key details regarding ownership structure and operational control remain to be clarified.

iulian@romania-insider.com

(Photo source: Inquam Photos/Daniel Stoenciu)