ZAGREB, November 29, 2018 – Croatian Minister of Economy, Entrepreneurship and Crafts, Darko Horvat, on Thursday confirmed that he had received a new restructuring concept for the shipyards in Rijeka and Pula, but said the government still isn’t certain whether Uljanik has a strong strategic partner that can financially support the dynamics of the restructuring.
“I received the new concept yesterday, the seventh or eighth draft of the restructuring programme, and it foresees 50% participation from a strategic partner, while the other 50%, about 660 million euro, would have to be provided by the state. However, the thing we don’t have at the moment or something neither the government nor I are certain of, is whether the state or Uljanik have a strong strategic partner that is prepared and capable of financially supporting the restructuring dynamic,” Horvat said in Brussels where he was attending a Competitiveness Council meeting.
Horvat added that, unlike three or four months ago, today there are “two very concrete proposals, two reputable shipbuilding groups that have managed in their business operations to secure the continuation of shipbuilding.”
“The Italian Finacantieri and the Ukraine Smart Holding have very clear guidelines that we are currently agreeing so that we can enable them to access the data room and conduct due diligence of all processes and the actual financial situation in the 3. Maj and Uljanik docks, so that they can submit a relevant bid that is acceptable to the management board and the government. That would be a good and clear sign of the possible start of restructuring of shipbuilding in Pula and in Rijeka,” Horvat said.
The government’s role is to assist the management board in finding a strategic partner for the restructuring of the two shipyards that would be prepared to cover 50% of the costs of that process. According to EU rules, the state’s share in restructuring can be no more than 50%.
Horvat also said that he had received an appeal for assistance from workers at the 3. Maj dock, but noted that 3. Maj was owned by the Uljanik Group and that the government doesn’t have the legitimacy to treat the companies within the Group separately.
For more on the Croatian shipyard crisis, click here.
