Dutch shipbuilder Damen Shipyards Group has completed the acquisition of the stake in Mangalia shipyard in Romania from Korean shipbuilding giant Daewoo Shipbuilding & Marine Engineering (DSME).
The transaction was faced with several hurdles since its signing in November 2017.
DSME owned 51% of the shares in the yard, formerly known as Daewoo Mangalia Heavy Industries (DMHI), and the Romanian government the remaining 49%.
However, the government was blocking the agreement between Damen and Daewoo for several months as it wanted to exercise its pre-emptive right through its shareholding in Santierul Naval 2 Mai SA Mangalia.
On March 21, 2018, negotiations between Damen and the Romanian government on DMHI were completed. The state decided to waive its pre-emptive right to acquire the stake owned by DSME under one condition. Specifically, Damen will have to assign 2% of the 51% share bought from Daewoo.
With this agreement, the Romanian government is becoming the majority shareholder in DMHI with 51% stake in the yard and Damen will hold the remaining 49% stake, Romanian Ministry of Economy said.
The yard, which will be renamed Damen Shipyards Mangalia, will be operated as a joint venture with the Romanian Government, with Damen assuming operational control.
The yard is located on the Black Sea coast, has three drydocks with a total length of 982 metres and 1.6 kilometres of berthing space. The docks, with a width of 48 and 60 metres, will provide Damen with capacity to cater for larger maritime vessels and structures.
Damen described the acquisition as a strategic move as the yard will complement Damen’s current shipyard portfolio, with the possibility for the construction and conversion of larger, high-end, and complex ferries, offshore construction vessels, etc. The yard’s total area of approximately 1 million m2 makes it the largest yard in the Damen Shipyards Group.
To signify its first day of operations at Damen Shipyards Mangalia in Romania, Damen held a ceremony at the yard on Monday, July 23.
The celebration introduced the Damen Shipyards Mangalia management team under the leadership of managing director Chris Groninger to the yard’s employees.
“We will face a challenging period, considering the yard’s current condition. However, with the full support of the Romanian Government, 2MMS, the shipyard’s experienced workforce, and the local community, Damen aims to restore the financial health of the yard, stabilize employment and pursue fitting commercial opportunities internationally that will contribute to rebuilding activity levels. In the meantime, Damen will facilitate a smooth transition and keep talented and skilled resources meaningfully employed,” Damen Shipyards Group executive board member Eggink, CFO, said.