Croatian Government Rejects Offers for Shipyards Privatization

The Croatian government has rejected offers made for the privatization of three of the five shipyards on the Adriatic coast. All these shipyards are heavily indebted and are managing to survive only due to the aid provided by the state. The smallest shipyard is located in Kraljevica, near Rijeka, and it has recorded the highest debt thus it will face liquidation very soon. A new tender for sale of Brodotrogir Shipyard is expected to be presented with subsidies of its restructuring.

Although a wealthy Croatian businessman has made an offer for both these companies, the government has not taken it seriously. The government actually believes that the real intention of the businessman is to close down the shipyards and start a new business, probably in the sector of tourism and construction, because the shipbuilding yards are located in very attractive coastal areas.

The largest shipyard, 3.Maj in Rijeka, will be offered for sale once again because the option for liquidation is not open at the moment. ”It is a relatively healthy company and we will do all we can to rescue it,” said Prime Minister Zoran Milanovic.

However, the shipyard in Split has already found a buyer. A steel company from Zagreb is going to invest around 250 million euros in the company in the coming years.

Uljanik in Pula is the only shipyard that has not faced any problems and is still making profits without subsidies. Upon its privatization, the company’s workers will buy part of the shipyard’s shares and the rest will be capitalized on the free market.

[mappress]

Shipbuilding Tribune Staff, March 23, 2012; Image: uljanik