Croatia has finalized the sale of the Uljanik Brodogradnja 1856 shipyard to Turkey's Kuzey Star by signing the final documents. This transaction, aimed at preserving the core shipbuilding activities at this facility, marks a new chapter in the long history of shipbuilding in the region, according to Croatian officials, and will assist in the reconstruction of a key industry.
Background of the Uljanik Shipyard
The Uljanik shipyard was once one of the largest employers and economic engines in the region, but has faced difficulties since 2019 due to financial issues. The number of employees at the plant has decreased to around 250, and several contractors have also faced similar challenges. Ultimately, the shipyard entered bankruptcy proceedings, prompting government officials to intervene and take control of the facility.
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Details of the Deal and Its Consequences
The Croatian Restructuring and Sale Center (CERP) announced in June a plan to auction the shipyard with a minimum price of €11.08 million. The center stated that four shares collectively represent over 97% ownership of the shipyard, with a total estimated value of over €34 million. In this auction, existing shipbuilding infrastructures and rights granted for operations were put up for sale, while the government retained ownership of the land in the Bay of Pula.
CERP reported that nine companies had requested the bidding package, but only two bids were received. One of the bids from Mira Finance Holdings based in Luxembourg was rejected because, according to CERP, it did not meet the guarantee requirements. Ultimately, Kuzey Star made a bid of €12.05 million (equivalent to $13.9 million) for the operations of Uljanik Brodogradnja 1856, which was accepted. However, since this company is not located in the European Union, it must undergo a foreign investment review process before the deal is finalized.
Croatian Minister of Economy, Ante Susić, noted that by signing this contract, Croatia is nearing the completion of the process to revitalize the shipbuilding industry in the Pula region. CERP also announced that the sales agreement and transfer of business shares were finalized on October 14, indicating stability and long-term sustainability for the company and its employees.
This deal is considered the second largest for the revitalization of the shipbuilding industry in Eastern Europe. Romania recently selected the German company Rheinmetall to purchase the bankrupt Mangalia shipyard. This company has announced that it will share the facility with MSC Mediterranean Shipping Company, dividing operations into military and commercial shipbuilding for MSC, and seeking to expand military shipbuilding opportunities in Eastern Europe.
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