EU urges Polish yards to abandon shipbuilding

EU competition chief Neelie Kroes has rejected Polish restructuring proposals for the state-controlled yards of Gdynia and Szczecin and the privatised Gdansk yard, a move which would bankrupt them. Instead, Kroes is proposing a plan that would involve selling off the two state-owned yards’ assets and using the proceeds to pay back the state aid.

“This would provide a fresh start for the shipyards and their employees. New investors would not be burdened with old debts. They could start any economic activity they wanted,” Kroes told the Gazeta Wyborcza daily. “The new companies can produce something else. The companies themselves will decide on the issue. The skills of employees of all the shipyards can be used not only for ship building but also in steel construction or similar areas.”

The yards have not made profit on a single ship built since Poland joined the European Union in 2004 and would have collapsed without state subsidies. Some analysts say the yards could still build ships profitably if better managed. Kroes however said: “Given the coming recession, it might be a good idea to focus on an industry with better prospects for making profit than shipbuilding.” She urged the Polish government to back her plan, saying it would otherwise lose any influence over the sale process.

In her interview, Kroes urged Warsaw to present a separate restructuring plan for the Gdansk shipyard, which is now in the hands of a Ukrainian investor. The three yards employ a total of around 15,000 workers but Polish officials say as many as 60,000 jobs could be at risk when suppliers and related sectors are taken into account.