Turkish Desan reportedly in talks to take over troubled Romanian shipyard
Romania Negotiates Shipyard Takeover Amid Crisis
Romanian authorities are in advanced talks with Turkey’s Desan Shipyard regarding a potential takeover of Damen Shipyards Mangalia, which has been struggling since its strategic partner, Damen, withdrew last year. The government aims to lease the shipyard’s facilities and workforce as a temporary solution to revive operations at the site, currently facing insolvency. This move comes as the Mangalia Shipyards grapple with a significant reduction in workforce and financial turmoil.
Desan Shipyard’s Ambitious Plans
Desan Shipyard, a family-owned business based in Turkey, is considering the acquisition of Damen Shipyards Mangalia, which has seen better days. With over 1,000 employees and projected revenues of USD 431 million in 2024, Desan is eyeing expansion opportunities. However, its current shipyard in Tuzla is significantly smaller than Mangalia, being over 30 times less in size. This potential takeover represents a strategic move for Desan as it seeks to enhance its production capabilities and market presence.
The Romanian Minister of Economy, Bogdan Ivan, confirmed that negotiations are progressing with an undisclosed investor interested in leasing the Mangalia facilities and workforce. This arrangement is viewed as a bridge solution to stabilize the shipyard, which has seen its workforce dwindle from over 1,500 employees to around 1,000, with nearly 300 layoffs occurring in the past two months. The situation at Mangalia has deteriorated sharply, with many workers currently classified as technically unemployed.
Financial Struggles and Creditor Claims
The financial landscape for Damen Shipyards Mangalia is precarious, with Damen itself among the creditors claiming approximately RON 700 million (EUR 140 million) from the shipyard. Additionally, Damen is pursuing the return of an advance payment of RON 1 billion (EUR 200 million). The preliminary insolvency report indicates that a total of 147 creditors, primarily linked to Damen, have filed claims amounting to nearly RON 2 billion (EUR 400 million). This financial strain follows Damen’s withdrawal from its partnership with the Romanian government last year, citing breaches of contract by the authorities.
The ongoing negotiations with Desan Shipyard could provide a lifeline for the troubled Mangalia Shipyards, potentially restoring operations and employment in the region. As discussions continue, the future of the shipyard remains uncertain, but the involvement of a new investor could signal a turning point in its recovery.
