Mangalia Shipyard sold at last

Daewoo Mangalia Heavy Industries in Romania will pay the equivalent of 3.6 million euros for the takeover of Mangalia Shipyards from the Ministry of Economy and Commerce (MEC). According to a press release of the ministry, Daewoo, who was the only bidder, paid the asking price established by the seller. The group also pledged to start a three-year investment program for the modernization and development of the shipyard worth at least 3.5 million euros. 2.5 million euros of this sum would be allocated within one year from the moment of shares’ ownership transfer.

The winner of the one-bidder tender will also have to spend a minimum of 500,000 euros in the improvement of environmental standards. The same amount will be allocated as working capital within three months from the ownership transfer. This is the third attempt to privatize the shipyard after the one that MEC cancelled in October 2005 right after the sale announcement and an even earlier one that failed in 2004. The authority explained then that the process will be resumed in such a way that the tender would attract the largest possible number of participants. In October, besides Daewoo Heavy Industries, two other investors (2X1 Holding Cape Midia Shipyard and Grupul Energetic Tender) had expressed interest.

Mangalia Shipyards has a social capital of 1.4 million euros and is specialized in the design, construction and maintenance of sea-going and river-going ships.