Croatia Completes Sale of Uljanik Shipyard to Turkey’s Kuzey Star
The court-appointed government administrator reports that it signed the final documents to conclude the sale of the Pula area shipbuilding facilities of Uljanik Brodogradnja 1856 to the Turkish-owned shipbuilder Kuzey Star. With a commitment from the buyer to retain the core shipbuilding activities at the facilities, including construction, repair, and overhaul, the Croatian officials said the deal marks a new chapter in the region’s long heritage in shipbuilding and restores a key industry.
Uljanik had been a major employer and economic driver for the region before the yard fell on hard financial times starting in 2019. It had declined to about 250 employees with an equal number of subcontractors but went into bankruptcy proceedings. The creditors had attempted to sell, in 2023 and 2024, the approximately 55 percent stake of the company held privately before the government stepped in to take control of the company. The plan called for stabilizing and restructuring the operation while getting employees their back pay.
Coratia’s Center for Restructuring and Sale (CERP) announced in June its plan to auction the shipbuilding company with a minimum price of €11.08 million. It said the four combined interests, which represented more than 97 percent ownership, had a combined value of more than €34 million. It was offering for sale the existing shipbuilding infrastructure and concession rights for the operation, but the government retains ownership of the land in the Bay of Pula.
CERP reported that nine companies had requested the bidding packet, but only two proposals were received when the tender window closed in September. One offer, from Luxembourg-based Mira Finance Holding, was deemed invalid because CERP said it had not completed the bond requirements.
Kuzey Star bid €12.05 million ($13.9 million) for the operations of Uljanik Brodogradnja 1856. CERP said it accepted the offer but noted that because the company was not within the European Union, it would be required to carry out a foreign investment screening procedure before the deal could be completed.
“By signing this contract, Croatia is approaching the completion of the process of revitalizing the shipbuilding industry in the Pula area,” commented the Minister of the Economy, Ante Susnjar.
CERP reports that the agreement of sale and the transfer of business shares were completed on October 14. It highlighted the completion of the restructuring and stabilization procedure, saying the long-term stability of the company and its employees had been achieved while protecting the interests of the state. It also noted the readiness and ability of foreign and domestic investors to proceed with the deal.
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Noted that Kuzey Star had existing relationships with the yard after having worked on joint projects. It noted that the buyer has yards in Tuzla and Yalova, with an understanding of the business. They look forward to developing the business relationships.
It is the second major deal to revitalize shipbuilding in Eastern Europe. Romania recently selected Germany’s Rheinmetall to acquire the bankrupt Mangalia shipyard, located south of Constanta. Rheinmetall announced that it is sharing the yard with MSC Mediterranean Shipping Company, and the operations would be divided into its naval shipbuilding and commercial operations for MSC. It looks to use the yard to expand naval shipbuilding opportunities in Eastern Europe.
