Daewoo’s Romanian Unit Could Receive Loan Boost

7 June 2010 (Last Updated June 7th, 2010 18:30)

Daewoo Mangalia Heavy Industries, a subsidiary of Daewoo Shipbuilding and Marine Engineering (DSME), could receive an $83.5m loan from the local government in Romania to help begin operations in the region. DSME owns a 51% stake in Daewoo-Mangalia, which has an order backlog of 14 vessels

Daewoo Mangalia Heavy Industries, a subsidiary of Daewoo Shipbuilding and Marine Engineering (DSME), could receive an $83.5m loan from the local government in Romania to help begin operations in the region.

DSME owns a 51% stake in Daewoo-Mangalia, which has an order backlog of 14 vessels valued at $1.1bn that would take over two years to complete, according to businessweek.com.

Prior to the loan arrangement, Daewoo procured loans worth KRW70bn ($56.6m) for the Romanian unit.

Daewoo-Mangalia has received only one order since the end of 2008 from a consortium headed by the Korea National Oil Corp for a barge-type submersible drilling rig.