Debt of Daewoo Mangalia Heavy Industries expanded to 1 billion USD

Daewoo Mangalia Heavy IndustriesRomanian shipyard Daewoo Mangalia Heavy Industries accumulated loss of 800 million USD since 2012, putting thousands of workers in danger of running out of jobs. According to Romanian Minister of Economy Alexandru Petrescu, are necessary urgent measures between the state, which holds 49% of shares, and the Korean DSME, in order to ensure the protection of 6,000 employees, who are working in the yard. The total liabilities of the shipyard in 2009 amounted to 90 million USD, but during the finance crisis rose to 145 million USD in 2012. The collapse in shipping sector caused additional pressure of the debt of Daewoo Mangalia Heavy Industries, which rose to over 1 billion USD in end of 2016.

“Daewoo has difficulties worldwide. All plants of the company are under financial stress”, commented Romanian Minister of Economy Alexandru Petrescu during a meeting in the shipyard. “We plan to hold talks with the South Korean government in order to solve the problem with Romanian shipyard. There are 6,000 employees of which 3,000 subcontractors. I would not like south of the county to turn into a social situation”, added he.

While the company claims that Daewoo Mangalia Heavy Industries has contracts until the end, the labor union reveals that after Easter, more than 1,000 employees will remain already unemployed.

Daewoo Mangalia Heavy Industries is a large shipyard located 45 km south of the Port of Constanta in Mangalia, Romania. It was formed in 1997 as a joint venture between South Korean company Daewoo Shipbuilding & Marine Engineering and the 2 Mai Shipyard in Mangalia. Since it was founded the company built over 127 new ships and repaired around 300 ships. Last years the world shipbuilding is in severe crisis, which caused significant debts and loses of all market participants. Daewoo Mangalia Heavy Industries accumulated loss of 800 million USD since 2012 and total dept exceeded 1 billion USD.