Romania is pushing to finalise a near EUR 1 billion contract with German defence group Rheinmetall by May 31, in what officials openly frame as a last-minute opportunity to revive the bankrupt Mangalia shipyard, Ziarul Financiar reported on April 30. Economy minister Ambrozie-Irineu Darău said the probability of the deal collapsing is “only 1%”, underscoring both the urgency and the high stakes surrounding the project.

The contract, financed under the EU-backed SAFE defence programme, envisages the construction of four military vessels, with Romanian authorities insisting that production should take place domestically, preferably at the Mangalia facility on the Black Sea.

“We are still negotiating until the signature,” Darău said, noting that the investment plans have already cleared scrutiny by the European Commission and parliamentary committees.

The timing is critical. Mangalia shipyard, formerly operated by Damen and now under bankruptcy proceedings, risks losing not only industrial capacity but also its remaining skilled workforce if new orders do not materialise quickly. The Romanian state holds a majority stake, while Damen retains 49% and remains the largest creditor, complicating efforts to restructure operations and attract fresh capital.

Rheinmetall representatives visited the shipyard alongside officials from Mediterranean Shipping Company (MSC), which has expressed interest in taking over management. Turkish shipbuilder Desan has also entered discussions with the government over potentially leasing production facilities and workforce, turning Mangalia into the centre of a multi-party contest for control and revival.

Darău said the government’s objective is to secure “serious companies with the financial capacity to carry out long-term investments”, a pointed acknowledgement that previous arrangements failed to provide stability. Without a binding agreement in the coming weeks, the risk is that Mangalia shifts from temporary insolvency into irreversible industrial decline.

The Rheinmetall contract, if signed on time, would not only anchor the shipyard’s recovery but also tie Romania more closely into European defence supply chains at a moment when military procurement is accelerating across the region.

iulian@romania-insider.com

(Photo source: Inquam Photos/Daniel Stoenciu)