Romania could grant credit for Daewoo Mangalia naval site

Daewoo Shipbuilding & Marine Engineering, the second world naval constructor, announced that its Romanian division Daewoo Mangalia Heavy Industries could receive a government guarantee for a credit meant to fund its operations, according to Bloomberg. South-Korean group spokes person Ahn Wook Hyeon declared that Romanian authorities could grant around 100 billion wons (83 million dollars) that a Romanian bank may grant Daewoo Mangalia.

He did not want to reveal the bank’s name.

Ahn Wook Hyeon noted that, two months ago, the South-Koreean group granted 70 million wons worth of credit for its Romanian division. Earlier, the Korea Economic Daily indicated that Daewoo would inject 170 million wons in Daewoo Mangalia Heavy Industries.

At the end of 2009, the naval site in Mangalia (South-East Romania) was in huge debt, higher than its own capitals, which affected its production capacity. The company has received orders for 14 ships so far, worth of 1.1 billion dollars, which are going to be built over the next two years.

Daewoo Mangalia Heavy Industries was created in 1997, a result of the association of Daewoo Shipbuilding & Marine Engineering – which owns 51% of the shares – and 2 May Naval Site, controlled by the Romanian state.