Romanian Government Takes Back Control Of Daewoo Mangalia Heavy Industry

- Mar 27, 2018-

The Dutch Damen Shipyard Group recently reached an agreement with the Romanian government, agreeing to reduce its share in Romania's Daewoo Mangalia (DMHI) from 51% to 49%.

 

According to this agreement, the Romanian government will be able to regain control of Daewoo Mangalia’s heavy industry. The Romanian government will own 51% of Daewoo Mangalia Heavy Industry, and the remaining 49% will be owned by the Damen Shipyard Group. con.reducer

 

Daewoo Mangalia Heavy Industry is the largest shipyard in Romania. Founded in 1997, it is a joint venture shipyard of South Korea’s Daewoo Shipbuilding and Romania’s state-owned 2 Mai Mangalia shipyard. 51% of the shares are owned by Daewoo Shipbuilding and 49% by 2 Mai Mangalia Shipyard owned.

 

In November last year, the Damen Shipbuilding Group and Daewoo Shipbuilding agreed to purchase 51% of the shares held by Daewoo Shipbuilding at a price of 29 billion won (approximately US$25.9 million). In terms of scale, Daewoo Mangalia will become the largest shipyard of the Damen Shipyard Group.Elbow

 

However, at the beginning of this year, the acquisition of the Damen Shipyard Group was blocked by the Romanian government. At that time, the Romanian government stated that it would use the preemptive right to recover all the 51% shares of Daewoo Shipbuilding.duplex steel welding pipe

 

It is understood that Daewoo Mangalia Heavy Industry is located on the coast of the Black Sea, with an area of 980,000 square meters. It has 3 dry docks with a total length of 982 meters and a width of 48-60 meters and can accommodate large ships and structures. Currently, Daewoo Mangalia has built 127 tankers and container ships.

Over the past five years, Daewoo Mangalia Heavy Industry has continued to lose money, accumulating losses of approximately US$800 million, even though shipyards have delivered more than a dozen new ships during this period.