Somewhere between Sun 1 Jul 2012 and Wed 31 Jul 2013

Croatia sells struggling shipyard

The Croatian government is set to sell the loss-making Brodotrogir shipyard, which is one of several shipyards that the Balkan country has to restructure before its EU integration process is completed in July 2013.

The reason for the EU demanded restructuring of Croatian shipyards, which employ more than 10,000 people, is the accumulation of losses of around €3.7 billion during the past 20 years. 

A ninety-five percent stake in Brodotrogir will be sold to the Kermas Energija firm for the symbolic price of 1 kuna, which accounts for €0.13 or $0.16. 

According to Croatia's Prime Minister Zoran Milanovic, the government "chose the proposal that ... guarantees that industrial production, production of ships, will continue". 

The shipyard's restructuring will cost the company around €665 million, of which the state will provide more than a half.

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