Netherlands-headquartered Damen group is pulling out of shipyard Mangalia which is located on the Romanian Black Sea coast. The decision came after a discussion between Damen Shipyards Group CEO Arnout Damen and Romania’s Prime Minister Marcel Ciolacu, local media reported.
Damen took operational control of the shipyard in 2018 with high expectations for the operation which remained 51% owned by the Romanian government.
The Mangalia shipyard entered insolvency in June 2024, following a bankruptcy request filed by Damen against the joint venture in May, citing a lack of support from the Romanian partner.
The Romanian government in June 2023 passed a new law that gave it control of Mangalia and limited Damen’s involvement to a minority investor. The company protested but unable to resolve issues with the government moved in August 2023 to terminate the joint venture.
Mangalia shipyard opened in the mid-70s. Between 1976 and 1997 the yard, which was then called 2 Mai Mangalia Shipyard, built and repaired a wide range of vessels. With Romania changing into a market economy, in 1997 Daewoo from Korea, in a joint venture with the Romanian Government, took control of the yard, which was renamed Daewoo Mangalia Heavy Industries (DMHI).
The yard subsequently expanded its facilities and focussed completely on the newbuilding of large commercial vessels. Between 1997 and 2017, DMHI delivered over 200 vessels, ranging from Handysize to Capesize bulkers, from feeders to Post-Panamax container vessels and from smaller chemical tankers to Suezmax crude oil tankers.
After a long negotiation process, Damen completed the acquisition of the shareholdings of the yard from Daewoo Shipbuilding and Marine Engineering in July 2018.
Damen highlighted that the yard covering a vast 100-hectare site had three large drydocks and it was the largest in its group. Damen has a long history with Romania as its first venture in the Southeastern country was Damen Shipyards Galati (DSGa), which joined the group in 1999. Damen’s operations at Galati are separate from Mangalia. Galati is situated in the east of the country, 230 kilometres north of Mangalia and on the banks of the River Danube.
Damen Group at a Glance
Founded: 1927 Headquarters: Gorinchem, Netherlands Turnover: 3.1 bn EUR (2023) Employees: 12.5 K Shipyards Worldwide: 35
