Rheinmetall and MSC in talks to jointly take over Romanian shipyard Mangalia

German group Rheinmetall and Swiss shipping company MSC have announced their intention to jointly take over the Mangalia shipyard and transform it into a dual-use centre for both military and civilian shipbuilding, according to a press release from the two potential investors. Under bankruptcy, the yard can be taken over by the Romanian state at no more than its liquidation value, set at EUR 87 million, and use it for defence production purposes in a joint venture, according to an emergency ordinance passed recently by the executive.

The talks come shortly after Romania proposed to Rheinmetall a contract worth nearly EUR 1 billion for four ships to be built under the military endowment scheme SAFE. In total, the German company expects to collect over five billion euros from the contracts with Romania, including, among others, Lynx KF41 infantry fighting vehicles as well as Skynex and Skyranger air defence systems.