The 1,500 employees of Damen Shipyards Mangalia in Romania urged the Government to address the imminent collapse of the company as the Dutch group is pulling out of the management and is canceling the partnership contracts in response to legislative changes. 

The trade union at Damen Shipyards Mangalia warns that the shipyard’s activity may cease for a long period while the company itself faces significant debts and risks a litigation process with Damen, Economica.net reported.

Damen holds a 49% stake in the shipyard after taking over a 51% stake from Daewoo group in 2018 and passing a 2% stake to the Romanian state in exchange for the management of the company. The foreign investor has secured working capital and orders so far. 

However, legislative changes last year invalidated the agreement and pushed the company into an uncertain legal situation. 

Last August, Damen decided to terminate the agreement and concentrate activity at Galati Shipyard, which it operates in Romania.

iulian@romania-insider.com

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