Romania in talks with Turkish firm Desan to revive Mangalia shipyard

Romanian authorities are reportedly in advanced negotiations with Türkiye-based shipbuilding company Desan to lease the production facilities and workforce of Damen Shipyards Mangalia (DSMa), according to sources familiar with the matter.

Desan, which operates a shipyard in the Tuzla district of Istanbul, is reportedly interested in expanding its capacity to service vessels larger than those permitted through the Panama Canal.

DSMa’s existing dry docks meet those requirements, making the Mangalia yard a potential fit.

Damen Mangalia faces insolvency and mass layoffs

The Mangalia shipyard has been in financial distress, with over 200 workers laid off as of February 28, and more than 1,000 employees placed on technical unemployment until May 31.

Damen Shipyards Mangalia is currently under insolvency proceedings initiated in June 2024.

The Romanian government, which holds a 51% majority stake in the yard through the 2 Mai Shipyard, has been seeking solutions to maintain economic activity at the facility.

Dutch company Damen Holding holds the remaining 49% and has announced its intention to exit the joint venture following the adoption of Law 187/2023, which nullified the operational framework of the partnership.

Economy Minister: Leasing deal could secure jobs

Romanian Economy Minister Bogdan Ivan confirmed ongoing talks with a “potential investor” — now revealed to be Desan — to lease the facilities and workforce.

He emphasized that the goal is to restart shipyard operations and ensure employee salaries can continue to be paid.

The investor would operate the yard and maintain economic activity, while direct negotiations for asset and debt transfer are taking place between Damen and the Turkish firm.

Damen representatives have also visited Türkiye, but no formal outcome has been announced.

Concerns persist over long-term viability

Despite the leasing proposal, workers’ representatives remain skeptical.

Union leader Laurentiu Gobeaja said that temporary leasing for a period of four to five years would not address the shipyard’s underlying structural problems. Employees fear the delay in finding a lasting solution could result in prolonged economic instability.

Gobeaja added that internal tensions between the Romanian state and Damen have contributed to the deadlock. “The two shareholders have failed to cooperate effectively, and this has led to a collapse of trust,” he said.