Koreans at Daewoo Mangalia don't believe in restructuring

The turnover of shipyard Daewoo Mangalia Heavy Industry reached record levels in 2008 and 2009, but losses also climbed significantly, exceeding 200 million euros in two years.

The management of Daewoo Mangalia Heavy Industry (DMHI), Romania's biggest shipbuilder, says if production can be covered by the existing orders, it does not deem necessary to conduct a major restructuring of its activity.
In the last two years, although the builder boasted a large volume of orders and posted record-high yearly turnover, of over 1.2 billion RON (280 million euros), the company registered the biggest losses in the shipyard's history, which amounted to almost 220 million euros in cumulated losses in 2008 and 2009.
Daewoo Mangalia, in which the state holds a 49% stake and Korean group Daewoo 51%, is the biggest economic operator in Constanţa city (SE Romania), employing around 3,500 and another several thousand indirectly. This could be one of the reasons for which, although the company is facing major financial difficulties, the management has so far been less willing to resort to redundancies like most major companies in Romania did, with the only such measures announced so far being 72 layoffs operated in February.