The Mangalia shipyard in Romania is resuming operations gradually following its entry into insolvency in 2024 after Dutch shipbuilding group Damen withdrew from the joint venture.

The shipyard's management has introduced measures to stabilize finances and revive activity, with employee salaries to be paid in phased installments, Ziarul Financiar announced on May 8.

The company's management has expressed optimism about the relaunch plan, citing continued interest from international clients.

The Dutch group Damen and the Romanian state-owned company 2MMS agreed last year to terminate the association contract signed in 2018 for the shared operation of Mangalia Shipyard (Santierul Naval 2 Mai). The financial performance of the shipyard had previously deteriorated, and the companies in the Damen group decided to phase out the financing, triggering the insolvency process.

More than 800 employees will receive 60% of their wages between May 12–16, with the remaining 40% to be paid at the end of the month, between May 26–30, according to the shipyard's officials. This payment scheme mirrors the arrangement used in April. The necessary funds have been secured through receivables recovery and advance payments from clients, the company said.

Management is maintaining ongoing discussions with commercial partners to secure continuity at the site, which is currently focusing on ship repair contracts. A new repair project for a major international client is set to begin in May.

At least 13 more repair projects are planned through the end of the year, which are expected to generate sufficient cash flow to cover operational expenses and resume delayed payments starting in August.

Damen Shipyards Group exited the Mangalia joint venture in 2023 after disagreements over strategic control and decision-making with the Romanian state, which held the majority stake. The shipyard faced financial instability following Damen's departure, culminating in insolvency proceedings earlier this year.

The Mangalia facility, located on the Black Sea coast, is one of the largest shipyards in the region. Historically known for both shipbuilding and repair, it has played a significant role in Romania's maritime industry.

(Photo: Adriana Sulugiuc/ Dreamstime)

iulian@romania-insider.com