Damen acquired the shares held by Daewoo Group in Mangalia shipyard. The Romanian state is a minority shareholder.
“The acquisition will allow Damen to strengthen its foothold on the local shipbuilding and repair market.”
Damen representatives said Romania’s Competition Council already approved the transaction.
Daewoo Mangalia Heavy Industries is controlled by Daewoo Group and by Romanian company Santierul Naval 2 Mai S.A. Mangalia, which is 93.9% owned by the Economy Ministry. The Romanian state indirectly holds 49% of the shares of Daewoo Mangalia Heavy Industry.
Damen Galati reported a turnover of RON548 million in 2016, compared with RON470 million a yera before, and a net profit of only RON1.1 million in 2016, versus nearly RON25 million, according to Finance Ministry data.
The acquisition of Mangalia shipyard secures the Dutch group the position of leader on the Romanian shipbuilding market.
Daewoo-Mangalia Heavy Industries (DMHI) is the largest player on the shipbuilding market, with a turnover of RON2 billion in 2016, slightly higher than the level reported a year before. However, the shipyard reported loss of RON483 million, compared with RON515 million a year ago and had 2,400 employees, compared with nearly 2,600 in 2015, compared with Finance Ministry data.
Daewoo Shipbuilding started talks to sell off the shipyard last year, as part of an effort to restructure its worldwide business assets.