Shipyard in Mangalia starts slow progress following departure of Damen company
The Mangalia Shipyard in Romania is gearing up for a comeback, dusting off the cobwebs following its entry into insolvency in 2024 after the Dutch shipbuilding group, Damen, bailed on the joint venture.
Wanna know more about this resurrection? Ziarul Financiar got the scoop on May 8. The shipyard's new managers are pulling out all the stops to stabilize the finances and breathing life back into this maritime behemoth. Here's the lowdown.
First things first, employee paychecks. No one wants a hungry workforce, right? Salaries will be served in two helpings – the first installment between May 12-16, with the remainder due between May 26-30. This payment arrangement is akin to the strategy they employed back in April. The team secured the necessary funds through receivables recovery and advance payments from clients, assuring employee pockets won't be left completely empty.
The managers have their optimism caps firmly on, stating that international clients are still keen on doing business with the shipyard. No word on who these eager peeps are yet, but it's safe to say that the shipyard has served some top-notch customers in the past, so let's hope the attraction holds.
In 2023, Damen Shipyards Group chose to call it quits on the Mangalia joint venture following disagreements over strategic control and decision-making with the Romanian state, which held the majority stake. The shipyard was left to flounder, eventually leading to insolvency proceedings earlier this year.
The Mangalia facility, nestled on the Black Sea coast, is one of the largest shipyards in the region. Historically known for both shipbuilding and repair, it's played a significant role in Romania's maritime industry.
Now, let's talk about the future. A new repair project for a big-shot international client is set to kick off in May. At least 13 more repair projects are planned through year-end, which are expected to generate enough cash flow to cover operational expenses and resume delayed payments, starting in August.
The relaunch strategy centers around repair projects as a safer, more immediate source of revenue compared to building new ships, which can be costly and risky under current circumstances. The goal is to woo both domestic and international clients with the shipyard's strategic location and existing infrastructure for repair work.
The array of future repair projects remains under wraps for now, but the intention is clear – attract incoming repair contracts to keep things afloat. Stay tuned for more details as this story unfolds.
(Image: Adriana Sulugiuc/ Dreamstime)
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- The Mangalia Shipyard, following its entry into insolvency in 2024, is now implementing a phased strategy for recovery, with a focus on repair projects to generate immediate cash flow.
- The new managers at the Mangalia Shipyard are optimistic about the future of the business, with international clients reportedly still interested in doing business with them.
- The shipyard's financial situation is improving, with employee salaries being paid in two installments, secured through receivables recovery and advance payments from clients.
- In addition to repair projects, the shipyard plans to secure at least 13 more repair contracts by the end of the year, with the ultimate goal of attracting both domestic and international clients with its strategic location and existing repair infrastructure.
