September 08, 2008

Złomrex to take over Gdynia and Szczecin shipyards

Warsaw Business Journal reported that metals giant Złomrex is negotiating the takeover of shipyards in Gdynia and Szczecin. As per report the treasury ministry of Poland is currently negotiating the takeover of the Gdynia and Szczecin shipyards by Amber, a company established by steel industry group Złomrex.

Amber was the only bidder in both tenders for the sale of the shipyards and has already gained exclusive negotiation rights with the Treasury for the Gdynia Shipyard, the price for which should be known by mid April. It is not known exactly when the price for the Szczecin shipyard, Stocznia Szczecińska Nowa will be determined, but the Treasury is expected to make a final decision on prices and conditions for both shipyards by the end of April.

One of the main sticking points in the negotiations is the status of the shipyards' debts. Amber is insisting that the Treasury pay off the shipyards' heavy debts before it takes over the firms. The shipyards are so debt-saddled that the government has been lending each of them zł.100 million every two months to cover operating expenses.

Mr Przemysław Sztuczkowski president of Złomrex told daily Parkiet that "In the case of Gdynia Shipyard, we are negotiating the amount which we believe the state should invest in the firm. It is hard to say whether it is at the lower end of PLN 500 or at the higher end of PLN 800 million.”

According to estimates by Gdynia Shipyard, the Treasury should invest PLN 515 million in the company's debts and modernization, while a strategic investor ought to pump at least PLN 500 million into the firm.