Rheinmetall Acquires Damen Shipyards Mangalia for 138 Million Euros
The bankrupt Damen Shipyards Mangalia, the only Romanian facility with access to the Black Sea and the sole domestic site capable of building and repairing warships, was sold on Friday, October 9, for 138,034,320.47 euros excluding VAT following a public auction. The transaction concludes two years of insolvency, shareholder conflicts, and financial distress that pushed one of Romania’s largest industrial assets toward liquidation.
“Acest demers asigură posibilitatea reluării activității Șantierului Naval Mangalia, unul din cele mai importante active industriale ale României,” stated Paul Dieter Cîrlănaru, CEO of judicial liquidator CITR. “Vânzarea reprezintă finalul unui proces complex de valorificare menit să asigure continuitatea activității și o perspectivă de viitor încurajatoare.”
From Majority Partnership to Insolvency and Bankruptcy
The crisis at the Black Sea shipyard began following a 2018 ownership shift when Dutch group Damen acquired a majority stake from South Korea’s Daewoo, subsequently ceding 2% of shares to the Romanian state. This left the state with a 51% majority holding and Damen with 49%, under an agreement granting the Dutch group operational and managerial control.
Relations deteriorated in 2023 after Romania adopted Law no. 187/2023 altering public enterprise corporate governance rules. Damen notified authorities of the agreement’s termination, arguing the legislation breached their initial arrangement, and took the dispute to the Vienna International Arbitral Centre. The Dutch group requested the International Court of Arbitration in Vienna to terminate the agreement with the Romanian state. Meanwhile, the shipyard entered insolvency on June 19, 2024, at the request of Damen Holding B.V., which claimed 69.5% of total debts. Including group companies, they controlled about 85% of claims. The Tribunal of Constanța declared bankruptcy on April 28, 2026.
Bankruptcy Proceedings Lead to Collective Dismissals of Employees
The bankruptcy proceedings directly affected the shipyard’s personnel. In May 2026, the liquidator issued collective dismissal notices for 1,011 employees in two stages. All workers over 1,000 were dismissed with compensatory salaries. Currently, roughly 100 people provide security and maintenance at the site.
Prior to its financial collapse, the facility recorded a net profit of 158 million lei on a turnover of 988 million lei with nearly 2,000 employees in 2017. By contrast, in 2015 and 2026, the company reported revenues of over 2 billion lei while reporting losses. In 2015 and 2026, the workforce exceeded 2,500 people.
Strategic Military Production Plans Under the SAFE Framework
The winning bidder, Rheinmetall Real Estate România SRL, secured the asset at 75% of its initial 184 million euro market valuation after four prior auctions failed to attract buyers. The German defense technology giant secured a contract worth approximately 920 million euros to build four military vessels at the Mangalia yard. A specific contract for these vessels was signed with KG / Rheinmetall Naval Systems for 836 million euros. Two diving support vessels valued at 84 million euros are also tied to the production pipeline.
These naval procurement projects form part of the European Union’s SAFE financial instrument, through which Romania accessed 16.68 billion euros for strategic defense investments, military infrastructure, and industrial capacity building. This is the second largest EU allocation via this instrument, following Poland. The European Executive finalized the loan agreement signing on May 21, and Romania signed the most critical SAFE contracts by May 30. The defense contracts demand a delivery timeline stretching toward 2030, rendering the acquisition of the operational shipyard asset a necessary step for local manufacturing.
Rheinmetall’s Presence in Romania
Rheinmetall has been active in Romania since 2024 through Rheinmetall Automecanica in Mediaş and a powder factory project in Victoria. The company operates its Naval Systems division following the purchase of NVL shipyards from the Lürssen group, serving as a global supplier of naval systems and primary provider for German Navy programs.
Rheinmetall Real Estate Buys Damen Shipyards Mangalia Facility
Who bought the Damen Shipyards Mangalia facility?
Rheinmetall Real Estate România SRL purchased the shipyard assets for 138,034,320.47 euros excluding VAT during a public auction held on Friday, October 9, as confirmed by judicial liquidator CITR.
What was the ownership structure of the shipyard before bankruptcy?
The Romanian state held a 51% majority stake, while the Dutch group Damen held the remaining 49% with operational and managerial control under a 2018 agreement.
How many employees were affected by the shipyard’s bankruptcy?
1,011 workers at the Mangalia facility received collective dismissal notifications in May 2026 after the court ordered liquidation.
What military contracts are planned for the Mangalia shipyard?
Rheinmetall secured a roughly 920 million euro contract under the European SAFE framework to construct four military vessels and two diving support vessels locally at the shipyard by 2030.