The Croatian Government Sells Brodotrogir Shipyard

The Croatian Government Sells Brodotrogir Shipyard

After last month’s sale of its largest shipyard, Brodosplit, the Croatian government has signed another privatisation contract, this time for its ailing Brodotrogir shipyard. The shipyard was sold to a local company Kermas Energija for a price of 0.13 euros ($0.17). Kermas Energija acquired the stake of more than 95% and will now invest 270 million euros in the shipyard’s restructuring.

The new owner Danko Koncar, CEO of Kermas Energija, said that Brodotrogir would retain the shipbuilding activity within the scope allowed by the European Union. Koncar also said that it was necessary to create conditions for the overhaul of all kinds of ships and announced the construction of two marinas as well as the making of screw turbines, which he said would create jobs.

Background

Croatia agreed to carry out the restructuring of its shipyards in difficulty through their privatisation on the basis of a competitive tendering process by the date of its accession into the EU, on 1 July 2013. The Brodotrogir shipyard received no bid that complied with the conditions of the tender published in August 2009. After a second round of privatisation, the company Jadranska ulaganja d.o.o. submitted a proposal and its restructuring plan for Brodotrogir was accepted by the Croatian Competition Authority and the Commission in June 2011. In July 2012, Kermas Energija d.o.o. took over the restructuring programme from Jadranska ulaganja d.o.o. by mutual agreement.

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Shipbuilding Tribune Staff, April 11, 2013