Croatia is implementing a series of privatizations to revive its once-booming shipbuilding industry, which has been slumping due to rising costs, increased competition from Asian shipyards, and financial pressures caused by the coronavirus pandemic and the conflict between Russia and Ukraine.
After taking over 3 Maj Shipyard and Uljanik Brodogradiliste, the Croatian government’s Center for Restructuring and Sale (CERP) has reportedly initiated the sale process for 3 Maj Shipyard.
Records indicate that 3 Maj Shipyard, established in 1905, is one of Croatia’s largest shipbuilding facilities. It primarily constructs oil tankers, bulk carriers, and container ships, while also building small passenger ferries and yachts.
3 Maj Shipyard’s recent projects include building two luxury polar cruise ships for Australia’s Scenic Group. Due to financial difficulties, the shipyard was forced to establish its own subcontractor to manage the shipbuilding project and complete the cruise ship delivery.
Due to operational difficulties, the Rhodian government took over the 3 Maj Shipyard in January 2025 through a $10.6 million debt-to-equity swap, at which time the yard carried total liabilities exceeding $48 million. On the eve of its 120th anniversary, the 3 Maj Shipyard was forced into bankruptcy in April 2025 after creditors filed court proceedings, with a receiver appointed in May.
From the moment the Croatian government took control of the 3 Maj shipyard, it had planned to sell it for privatization. According to tender documents published by CERP, the Rhodian government will sell its 100% stake in the shipyard, with the lowest bid being approximately US$7.9 million. Bids will be accepted until November 17th.
The Croatian government planned to sell the 3 Maj Shipyard for privatization from the outset of its takeover. According to tender documents published by CERP, the Croatian government will sell its 100% stake in the 3 Maj, with a minimum bid of approximately $7.9 million and a bid deadline of November 17.
To revitalize its shipbuilding industry, Croatia has specifically introduced bidding restrictions requiring buyers to maintain shipbuilding operations at the 3 Maj Shipyard.
As early as 2024, the Croatian government also took over another major shipyard in the country, Uljanik Brodogradiliste, currently holding a 97% stake. After failing to sell a 55% stake in both 2023 and 2024, the shipyard went bankrupt and was taken over by the government to help pay employees’ overdue wages. It is expected to be reprivatized by the end of 2025.