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May 17, 2021

Daewoo Mangalia’s main shareholder asks for shipyard’s liquidation

Daewoo Shipbuilding & Marine Engineering has to liquidate the Daewoo Mangalia shipyard and a wind farm in the US because of the serious financial problems the group is facing, the Korea Development Bank, the company’s biggest shareholder, warns.

Korea Development Bank (KDB), which owns 31.46 per cent of Daewoo Shipbuilding & Marine Engineering, considers that the liquidation of the two divisions is inevitable considering the group’s operational losses of over USD 2.5 bln, the Korea IT Times website informs.

A KDB official explained that things will be clearer after the financial situation is analyzed.

The Romanian Economy Ministry, which indirectly owns 49 per cent of Daewoo Mangalia shares, states that in the first six months of the year the shipyard has significantly improved its operational result and has signed contracts for the construction of new ships whose completion deadlines were set in 2017.

The problem invoked by the representatives of Korea Development Bank, who say that the liquidation of the company that controls the Romanian shipyard is “inevitable,” consists of the huge USD 2.5 bln losses registered by Korea’s Daewoo Shipbuilding & Marine Engineering group. The shipyard in Mangalia is not unaware of these losses, considering that in 2014 it reported record losses of RON 706 M (EUR 160.4 M), almost 7 times higher than those registered in 2013. In 2009-2014 the shipbuilder registered a total negative result of RON 1.7 bln and posted no profit.

Starting with 1997, Daewoo-Mangalia Heavy Industries, a joint venture between well-known worldwide shipbuilding leader Daewoo Shipbuilding & Marine Engineering in Korea and “2 Mai” Mangalia Shipyard in Romania has been one of the most competitive shipbuilding, conversion & repair shipyard in the Black Sea area.

After developing suitable business programs the company has an annual construction capacity equivalent to eight vessel per year for bulk carriers of 180.000 DWT and/or containerships of 11.000 TEU.

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