The Croatian government has rejected the proposal for a restructuring plan for the troubled Uljanik and 3. Maj shipyards, that would cost EUR 1bn. The prime minister Andrej Plenković said the restructuring programme proposed by the shipyards’ strategic partner Brodosplit is economically unprofitable and unsustainable and hence its cost to the taxpayers cannot be justified.
Plenković emphasised that between 1992 and 2017 a total of around EUR 4.3bn was spent for the rehabilitation of the two shipyards and its state subsidies. He added the government continues to be open to finding a solution. However, its decision to reject Brodosplit’s proposal opens a possibility for bankruptcy of both shipyards.
The two shipyards have been in dire straits for months, recording huge losses which resulted in cancelled orders, blocked bank accounts and mounting debts to suppliers. Its workers have been staging strikes since the summer last years. The latest took place at the Uljanik dock in March demanding that the management and the government agree on a restructuring plan or get a loan to pay out their wages.