Croatia moves to privatize shipyards

Croatia’s government has decided to move forward with privatisation of its ailing shipyards, part of reforms required by the European Union which the country hopes to join by 2011. An international call for tenders will be launched for five struggling shipyards, while the decision on the only solvent one, Uljanik in the northern Adriatic town of Rijeka, will be made by the end of the month.

Croatia’s large state-owned shipyards employ around 11,500 people while shipbuilding accounts for around 15% of Croatia’s exports. Experts say they all need radical overhauls, warning they are technologically inferior to global rivals and suffer from low productivity, overstaffing and outdated management.