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Nov 10, 2017 12:16 EEST
BUCHAREST (Romania), November 10 (SeeNews) – Dutch group Damen said on Friday it has entered into an agreement with Daewoo Shipbuilding & Marine Engineering (DSME) to buy its majority share in Romania-based Daewoo Mangalia Heavy Industries (DMHI) for an undisclosed sum.
With the acquisition of the majority share in DMHI, Damen Shipyards Group takes the next step in strengthening its international shipbuilding and ship repair activities, it said in a press release. DMHI shipyard is located on the Black Sea coast.
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The Romanian competition authorities have already approved the envisaged transaction, Damen said. Furthermore, constructive meetings are being held with the Romanian government in relation to future cooperation in Mangalia and the further development of the Romanian shipbuilding industry.
DMHI was established in 1997 as a joint venture between South Korea's Daewoo Shipbuilding & Marine Engineering and Romania's 2 Mai Mangalia Shipyard with Daewoo as majority shareholder, with 50.99%. The other shareholders of the joint venture are 2 Mai Mangalia Shipyard, which is owned by the Romanian economy ministry, with 48.99%, and three Korean investors.
According to Romanian media reports, Damen will pay some 60 million euro ($69.6 million) for Daewoo's share in DMHI.
The DMHI shipyard spreads over an area of 980,000 sq m, has three dry docks with a total length of 982 metres and 1.6 kilometres of berthing space.
The docks, with a width of between 48 and 60 metres, will provide Damen with capacity to cater for the largest maritime vessels and structures. As such, this move represents a strategic complement to Damen’s current shipyard portfolio, the company said.
Damen already owns a shipyard in Romania, in Galati, a port city on the Danube river, which is currently the group’s largest shipyard. Since joining Damen in 1999, the Galati shipyard has developed into an efficient production facility with a significant output of many hundreds of vessels and structures.
With the Mangalia shipyard, Damen will have its two largest shipyards in close proximity to one another.
Damen Shipyards Group operates 33 shipbuilding and repair yards, employing 9,000 people worldwide. Damen has delivered more than 6,000 vessels in more than 100 countries and delivers some 180 vessels annually to customers worldwide.
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