Posted on October 28, 2026
Rheinmettal plans “dual use” operations
Germany’s Rheinmetall has won the auction for Romania’s bankrupt Damen Mangalia shipyard with a bid of €138.03 million before VAT, approximately 25% below the original €184 million asking price.
The October 9 auction followed four unsuccessful attempts to sell the yard. Rheinmetall Real Estate România SRL was declared the winning bidder. On October 19, Rheinmetall announced that it would acquire the facility jointly with Mediterranean Shipping Company (MSC).
The partners plan to develop Mangalia into a center for both commercial and military shipbuilding. Rheinmetall intends to upgrade the facility and use it to help build four vessels ordered by Romania: two 96-meter offshore patrol vessels and two 43-meter diver-support vessels.
Under the redevelopment plan, the shipyard will be divided into separate production sectors and security zones, allowing commercial and military shipbuilding to operate simultaneously. Rheinmetall plans substantial investment in modernizing existing infrastructure, improving production efficiency and expanding capacity. Tim Wagner, CEO of Rheinmetall Naval Systems, said the objective is to establish Mangalia as a major shipbuilding center serving southeastern Europe and international markets, for both military and commercial markets.
The partners also envision restoring Mangalia’s role as a major regional employer. Rheinmetall has indicated that the shipyard could eventually employ several thousand workers, supported by vocational training programs and a proposed research and development center. MSC’s participation would provide opportunities in commercial vessel construction and maintenance, while Rheinmetall intends to attract additional European naval contracts beyond Romania’s initial four-vessel order.
However, the transaction faces an unresolved legal challenge. Damen Holding, the shipyard’s principal creditor and 49% shareholder, is contesting the court decision that permitted the auction price reduction. Damen argues that the applicable law was interpreted incorrectly and that creditors should not bear the consequences of a forced sale below asset value. The Constanța Tribunal is scheduled to examine the challenge on November 4.
DredgeWire does not know if Damen itself bid on the assets.
As of October 27, the auction award has been announced, but completion has not been confirmed. Rheinmetall’s October 19 statement anticipated closing within a few weeks.
CITR, a Romanian insolvency and restructuring firm, served as the shipyard’s judicial administrator and organized the sale process under the supervision of the Constanța Tribunal. Florin Constantin of CITR was the executive in charge.
