Economy Ministry officially takes control at biggest shipyard in Romania

The Economy Ministry has finalized the transaction through which it reached a stake of 51% in the Mangalia shipyard, the biggest shipbuilder in Romania, according to an official announcement. While the Romanian state will hold the majority stake in the company, Dutch group Damen Shipyards will hold a 49% minority stake and the operational control, the Economy Ministry announced. The Government hopes that the Dutch group will manage to stabilize the shipyard’s financial situation and achieve a durable and efficient recovery of its activity. Damen initially reached an agreement with South Korean group Daewoo to buy 51% of the shipyard’s shares but the Romanian state, which held the remaining 49% blocked the deal and said it wanted to take control of the shipyard. In 2007, Daewoo Mangalia Heavy Industries had revenues of RON 1.5 billion (EUR 328 million) and a net profit of RON 158 million (EUR 34.5 million) after several years with big losses. The company had close to 2,000 employees, according to official data from the Finance Ministry. Romania nationalizes country’s largest shipyard editor@romania-insider.com