Major global shipping operator Mediterranean Shipping Company (MSC) Group has notified the Romanian government that it wants to take over the management of the Damen Mangalia shipyard, which has been under insolvency for the past year, according to Europa Libera Romania. The company reportedly paid in advance for the repair of some ships.
MSC is thus competing with the Turkish company Desan, which has also initiated negotiations with the Romanian authorities for renting production capacities and labor of the Damen Shipyards Mangalia, according to ReplicaOnline.
Since May, repair work has resumed, which is why approximately 800 employees are working on the site again. Currently, there are two ships in the docks, and one more is due to arrive.
Compared to the previous period, when there were approximately a thousand employees on technical unemployment, and only a hundred were working, now things are the opposite: approximately 800 have resumed work.
The Romanian shipyard has been under insolvency for over a year, and its debts surpass the value of assets, according to Profit.ro.
The total debts currently registered by creditors is RON 1.87 billion (EUR 380 million), of which RON 1.049 billion (EUR 200 million) already admitted and RON 827.6 million conditionally admitted, while the assets of Damen Shipyards Mangalia, including fixed assets, stocks, inventory items, receivables, and participations, were recently valued at a market value of RON 944.28 million EUR 190 million) and a liquidation value of almost RON 433 million (EUR 86 million).
MSC has expressed its interest in managing the Romanian shipyards, which is majority controlled by the Romanian state, with Damen still holding a 49% stake and being the largest creditor.
On April 20, 2025, Prabhat Jha, CEO of MSC Shipmanagement Limited, Limassol, sent a letter to Marcel Ciolacu, then prime minister, Marian Neacșu, deputy prime minister, and Ilie Bolojan, at that time still the interim president of Romania.
The letter states: “The growth of MSC’s fleet requires a large shipyard for new building programs, currently concentrated in Asia (for container ships) and Europe (for cruise ships).”
“We intend to consider the Mangalia shipyard for future construction of cruise ships, ropax (vessels for transporting vehicles and passengers, ed.) and tugboats,” it adds.
iulian@romania-insider.com
(Photo source: Inquam Photos/Daniel Stoenciu)
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