EC approved the sale of Brodosplit to the Samobor DIV

The privatization contract for Brodosplit can be signed. The European Commission approved a new plan for the Split shipyard at a morning meeting.

The signing of the contract with the Samobor DIV for the takeover of Brodosplit is expected on February 28.

The privatization contract for Brodosplit stipulates that the state’s obligations will be extended from three to five years, and the total cost to the state will increase from 1.263 billion kuna to 1.5 billion. The projected cost for this year is 480 million. Compensation measures had to be increased to cover the losses incurred during the privatization process for which the buyer cannot be blamed, but the state for not privatizing the shipyard quickly enough, explained Minister of Economy Ivan Vrdoljak during a recent visit to Brussels.

Recently, the Samobor DIV stated that employee shareholding has been part of their program for the Split shipyard from the very beginning. It is planned, he says, that within six months after the first recapitalization, employees will be offered up to 25 percent of the shares. The Samobor representatives announced that they will provide an initial discount on the nominal price of Brodosplit’s share of 60 kuna, along with an additional reduction of 1 percent for each year of service.

Shipbuilding has been one of the biggest problems of the Croatian economy for decades. For years, we have been producing ships on which we accumulate losses. There are 12,000 workers employed in shipyards, and another 5,500 are employed by contractors. Some former managements, like that of Brodosplit, have ended up in court. Viktor Lenac and Uljanik have been privatized. However, this has not succeeded for 3. Maj, Kraljevica, Brodosplit, and Brodotrogir. Brodotrogir is being purchased by Kermas Energija of Danko Končar, while Kraljevica is going into bankruptcy. Only at the end of last year was the second phase of the privatization of Pula’s Uljanik completed, which will enter the ownership of Rijeka’s 3. Maj as such.