Rheinmetall and MSC in Negotiations to Buy Romania’s Mangalia Shipyard
German industrial giant Rheinmetall confirmed it is discussing a deal with MSC Mediterranean Shipping Company for the two companies to take over the bankrupt Mangalia shipyard in Romania. A year ago, MSC had expressed interest in the yard as the government was beginning a reorganization of the operations.
Romanian government officials are reported to be negotiating a deal in which Rheinmetall and MSC would acquire the majority ownership in the yard, with the government retaining a small investment share. The yard, which has been involved with insolvency hearings and a planned reorganization, was pushed into bankruptcy last month.
Rheinmetall, best known for its military equipment and security systems, got into shipbuilding, announcing it would acquire NVL shipyards from Lürssen Group. The yard supports the German Navy, and the acquisition was seen as an opportunity to expand the company’s systems integration in naval warfare. Recent reports have linked Rheinmetall with a four-ship order, including two offshore patrol boats, to be built for Romania.
In a statement released on May 5, Rheinmetall says the acquisition of the shipyard would go beyond the four-ship contract and would represent an opportunity to support the future of Romanian shipbuilding and create a position in the defense industry. It says the plan envisions resuming shipyard operations and expanding from the four ships to the point that Romania could develop into a major European production hub for shipbuilding. It says the yard could eventually grow in the long-term to employ several thousand people.
“The revitalisation of the shipyard in Mangalia is of strategic importance,” says Rheinmetall. “The resumption of shipyard operations is expected to have significant positive effects on the region, contributing to the stability and development of the local business environment.”
Romanian media reports the government has moved to take over the assets of the shipyard, which has been held in a joint venture where the government is the majority investor and 49 percent is owned by Damen. Mangalia, which was established by the government in 1976, became a partnership with South Korea’s Daewoo Shipbuilding & Marine Engineering in 1997. Damen had taken over the yard in 2018, but it closed in 2024 after Damen notified the government of its intent to end a joint venture. Damen is reported to be the yard’s largest creditor.
The yard was recently valued by the insolvency court at €87 million ($102 million). Under the new legislation, the government could reclaim the yard by paying no more than the liquidation value of the yard.
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Romania’s Defense Minister has said the plan calls for the government to contribute the land and assets of the yard to the new partnership with Rheinmetall and MSC. The German company would develop the defense shipbuilding operation, while MSC would participate as the partner specializing in commercial shipbuilding.
Last year, MSC had written to the government saying it was looking to diversify its relationships for shipbuilding and repair. It said the operation could start with ship repair and be developed to become a builder of commercial ships, including future construction of cruise ships, ropax, and tugboats. The company proposed paying in advance for repair work to provide the yard funds for hiring back employees.