Daewoo Shipbuilding & Marine Engineering (DSME) announced on November 10 that the company sold off its subsidiary Daewoo-Mangalia Heavy Industries based in Romania.
DSME signed a sales and purchase agreement (SPA) with Damen Shipyards Group, the Netherlands’ largest shipbuilding company to sell its 51 percent stake in the Mangalia shipyard at 29 billion won (US$25.87 million). The two companies will finalize the transaction by November 29.
The latest sale of the Mangalia shipyard will lighten the financial burden on DSME. The shipyard was a joint venture of DSME and Romania’s state-run shipbuilder 2 Mai Mangalia Shipyard (2MMS) established in 1997 when DSME was an affiliate of Daewoo Group.
The Mangalia shipyard ranked among top 10 leading companies in Romania in four years after the acquisition, showing a rapid growth, but the company has suffered from a full-scale capital erosion after 2008 due to a low amount of ship orders won, delayed production and mounting losses caused by the global financial crisis.
The Original Jung Min-hee/Business Korea