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Major deal in Romanian industry: Dutch Damen, ready to buy Daewoo Mangalia shipyard

Daewoo Shipbuilding & Marine Engineering is very close to sell off its subsidiary Mangalia Shipyard in Romania to Dutch Damen shipbuilder,  HotNews.ro informs, quoting Korea Economic Daily.

Damen is Netherlands’ largest shipbuilding company and the owner of the shipyard in Galati.

Sources say the two companies are in the final stage of the negotiations.

As the Korean shipbuilder succeeded in selling its assets at higher prices than expected, the company is expected to improve its financial standing earlier than scheduled.

By the end of the first half of this year, Daewoo Shipbuilding has achieved 76.2 percent of the 2.71 trillion won in paying down the debt.

Romania, through the Economy Ministry, is minority shareholder at Daewoo Mangalia, owning 49 percent of the shares at the shipyard.

Established in 1997, the shipyard at south of Constanta on the Black Sea coast, has so far built 127 crude carriers and containers while repairing more than 300 ships.

Daewoo Shipbuilding started talks to sell off the shipyard since last year as part of an effort to restructure its worldwide business assets.

“The price negotiation between Daewoo and Damen has already completed and what’s left is the Romanian government’s go-ahead,” a shipbuilding industry official commented. Once the deal goes through as planned, Daewoo will be able to secure 50-80 billion won (EUR 38 M – EUR 61 M) from the transaction.

 

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