February the 21st, 2021 - The Rijeka 3 Maj shipyard has had some construction enquiries of late, could the market finally be waking up despite the ongoing coronavirus pandemic?

As Novac/Jozo Vrdoljak writes, at a recent session of the Croatian Government, a proposal for a conclusion on the manner of completion of the construction of the ship Novogradnja (Newbuild) 514, which is being built at the Rijeka 3 Maj shipyard, was adopted.

The government has instructed the Ministry of the Economy and Sustainable Development, in cooperation with Jadranbrod, to contract the completion of Novogradnja 514 at the Rijeka 3 Maj shipyard. This move initiated the procedure of completing the construction of the ship for an as yet unknown buyer.

At the Government session, a loan from the Croatian Bank for Reconstruction and Development was approved in order to finance the completion of the construction of the ship. It is a car transport ship and that vessel is part of a recovery plan and the start production at the Rijeka 3 Maj shipyard. The ship was previously owned by the bankrupt Uljanik shipyard in Pula, which contracted the work with the client, and the Rijeka Maj 3 shipyard was contracted as the builder of the ship.

"This is a ship that is part of a package of three ships that the Croatian Government decided to complete back in August last year. Novogradnja 514 is the last ship in that package. Apart from meeting the conditions of that decision, this job means something to us because our capacities are additionally employed and in this way the costs on other ships can be reduced. Our obligation is to complete the construction of this ship and we should do it in about a year, and the Croatian Government should then be able to find a buyer for it.

In addition to the ships from this package, one of which has been completed, the other is nearing completion. Along with Novogradnja 514, which is in the Rijeka 3 Maj shipyard, there is another ship on the first slipway. That ship was otherwise claimed as part of the bankruptcy property of Uljanik.

In addition to all ove this, we've had several inquiries for interesting projects that I've been processing. Such inquiries are very important to us because they show that the market has begun to wake up a bit, but also that the market recognises that the Rijeka May 3 shipyard is one that has started up again and remains alive. For that reason, we're receiving those inquiries,'' said Sinisa Ostojic of the shipyard.

To briefly recall, the client behind Novogradnja 514 terminated its construction contract back in 2018 at a time when about 70 percent of the construction of the ship had already been completed. In October last year, the government took ownership of Novogradnja 514, after that, a new model was awaited according to which construction would be completed.

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January 4, 2020 – A map showing production across the former Yugoslavia details the sustained prosperity of many Croatian favourites as some of the strongest Croatian brands are shown not only to have survived but have succeeded following independence

Media across Croatia, Bosnia and Serbia have surprised younger readers and reminded older readers with the publication of a map detailing production in the former Yugoslavia. While this trip down memory lane has caused a range of reactions across the countries of the former republic, looking at the map from a purely Croatian perspective gives some enlightening information. Namely, many of the strongest Croatian brands visible on the map are recognisable today. Some of the strongest Croatian brands not only survived independence but have since grown.

Bajadera - one of the most popular products made by Zagreb-based chocolate and confectionery manufacturers Kraš

Zagreb-based chocolate and confectionery manufacturers Kraš, Požega-based confectionery and drinks manufacturers Zvečevo, oil company INA, Koprivnica-based food company Podravka and Koprivnica-based pharmaceuticals company Belupo, vitamin drink Cedevita, Varaždin-based food company Vindija, Vukovar shoemakers Borovo, Varaždin clothes designers and manufacturers Varteks and multi-use condiment Vegeta are just some of the strongest Croatian brands that are present on the map. You are still likely to see these brand names on many Croatian high streets. Some have succeeded in reaching further into international markets since Croatian independence.

Croatian-made condiment Vegeta is sold all over the world

Of course, not every brand visible on the map of Yugoslavia production has fared so well. In their coverage of the map, Ri.portal reminds that “Some of the Yugoslav products were used by literally the whole world - ships, cars, planes, trucks, weapons and even computers were produced... However, many of these companies no longer exist or are bankrupt.”

In their coverage of the map, Bosnian website Klix reminds that Croatian shipyards Uljanik in Pula and 3 Maj in Rijeka were at world level and produced large ships for customers from all over the world. Split-based shipyard Brodosplit, which can also be seen on the map, survives to this day.

Croatian vitamin drink Cedevita comes in a range of flavours

Ri.portal goes on to remember that Yugoslavia was one of only five countries in Europe at the time that manufactured its own computers. “Probably the most famous is the Galaxy, while the first computer produced was the CER-10,” they say. One of the Yugoslav computer makers on the map, popular in the late 1970s, was Digitron, based in Buje in Istria.

Sadly, not all of the strongest Croatian brands have made it until today. Famous tractor and agriculture equipment manufacturer Tomo Vinković of Bjelovar is no longer in production. Their famously-reliable machines are much in-demand on the secondhand market. Two new tractor manufacturers, Hittner doo and the Prima tractor factory still make tractors in Bjelovar.

Maj 22, 2020 - The Prime Minister toured the most luxurious ship in the world, currently anchored in the port of Rijeka, not far from his sister vessel, which construction began recently in Rijeka shipyard 3. maj as a part of an investment worth 860 million euros

Prime Minister Andrej Plenković, accompanied by Minister of Economy, Entrepreneurship and Crafts Darko Horvat, Minister of the Sea, Transport and Infrastructure Oleg Butković and Minister of Tourism Gari Cappelli, visited the Scenic Eclipse, the best luxury ship in the world according to critics from last year. The luxury 6-star ship, owned by the Australian Scenic Group, sailed into the port of Rijeka this month, where it will remain until the situation with the coronavirus calms down.

We will be looking for solutions that will enable the continuation of Croatian shipbuilding because it was fascinating to see that in such difficult circumstances a ship like this was built in Uljanik. Many of the shipyard employees contributed greatly to the construction of this ship, although it ended with one incredible personal engagement of the client himself. The whole idea is to start with further investments, this time in 3. maj. Such ships, according to the captain are the best there is at the moment when it comes to polar cruisers and will be built in the Rijeka shipyard in the future, said Prime Minister Plenković. He also stated that the intentions of the Scenic Group are still very strong and a solution is being sought on how to proceed with these processes in the right way.

Prime Minister Plenković and ministers were welcomed in Rijeka by Saša Čokljat, director of MKM Yachts, a subsidiary of the Australian corporation Scenic, which has ordered Eclipse II. Australian businessman and Scenic Group owner Glen Moroney greeted them via video call from Switzerland. On this occasion, Čokljat once again expressed his satisfaction with the excellent cooperation with the Government of the Republic of Croatia, which has recognized the importance of the project and the long-term development perspective it can provide to the Croatian shipbuilding.

I am extremely glad because, at the moment when other cruising companies are putting their projects on hold, Scenic Group and 3. maj are starting a new business. We believe that this job will not only strengthen Scenic's fleet but also the shipyard itself. The activation of state guarantees awaits us soon which will enable a needed work to start the construction in full swing of the sister luxury polar cruiser ship. I believe that one such construction creates an opportunity to preserve rich tradition in shipbuilding, the continuity of production and knowledge, and hundreds of jobs, said Čokljat.

If we make a recall, cutting the sheets for the hull of the ship "Eclipse II" in April concluded a new project of building five cruisers worth 860 million euros. The first 1,000 tons of steel from a total of 4,500 arrived from North Macedonia. The hull keel is scheduled to be laid in 3. maj by the beginning of this summer. Then, the construction of four more ships with similar characteristics is planned. 

"Scenic Eclipse" was also built and completed at the Croatian shipyard Uljanik in July 2019. Its construction is specific because, at a time when the ship was only half-way completed, Uljanik ended in a blockade and bankruptcy. Scenic then set a precedent - it did not collect 50 million euros of state guarantees, but it returned them to the state - it kept the ship and continued construction with its own funds and manpower. There are two helicopters on board for trips to distant places, as well as a submarine that can dive to a depth of 330 meters below the sea surface to provide guests with an unforgettable and unique adventure experience. At the christening ceremony in New York last year, the godmother of "Scenic Eclipse" was the famous actress Helen Mirren.

Now meet the original Scenic Eclipse. You can learn more about Scenic Eclipse on the official website. 

Yesterday, TCN reported on the incredible story of Scenic Eclipse, the world's first polar discovery yacht cruiser, built in Croatia, christened by Dame Helen Mirren, and winner of the Cruise Critic Best New Luxury Ship 2019. A ship which is unique and setting the standards in high-end luxury cruise tourism. Read the full story here. 

There have been developments to the story, as reported today in the Croatian media.

As Dnevnik/Ivan Forjan writes on the 15th of January, 2020, better business awaits the Rijeka shipyard 3 Maj and could arrive from as far away as Australia. After one of the most luxurious cruise ships in the world, Scenic Eclipse, was built in the Pula shipyard Uljanik last year, production should resume in Rijeka. The mega-investment is worth several hundred million euros in total.

Due to its state-of-the-art equipment, it can sail all the seas of the world, even through the very iciest of waters. It also boasts its own submarine and even two helicopters. Its production cost more than 200 million euros in total, and the vessel you're looking at was constructed in Uljanik in Pula, Croatia. It has already sailed half of the world.

(Dame Helen Mirren christening Scenic Eclipse in New York)

"This is one of the most sophisticated and elegant ships of this type. We can all be proud that such a ship was made in Croatia. What makes this ship stand out is the luxury, a penthouse of about 200 square metres, offering dishes from different cuisines from across the world, from Asian to French,'' points out Sasha Cokljat of Scenic Group.

(Scenic Group owner Glen Moroney at the christening of Scenic Eclipse)

Satisfied with the work done by Uljanik for them, Australian investors now want to build five more ships like this to be constructed at Rijeka's 3 Maj shipyard. Glen Moroney, the owner of Scenic Group with extensive shipbuilding experience, is behind the whole project. Glen himself has come to see the expertise of local shipbuilders several times now.

"We were able to keep that nucleus of knowledge that was in Uljanik in 3 Maj. The whole team is Croatian, and that's exactly what we base our further development on and we think we can do it in Croatia. We're looking for some modality for joint construction and we're also in talks with the 3 Maj shipyard and with the Croatian Government,'' Cokljat stated.

The Ministry of Economy has confirmed that there is serious interest from Australians. And what can be said about everything that has happened at 3 Maj which has produced more losses than it has ships in recent years? Hundreds of workers have left, but the quality of vessels made there is still recognised by investors.

"It would mean one big plus, one boat is not enough work, one has to strive to get as much work as possible. Many things have changed, first of all - we get paid, our salaries have become regular," said Dalibor Cupkovic of 3 Maj's Trade Union Committee.

Five new exclusive cruisers would be a guarantee that this would continue. The job would go on until least until 2026, which would mean a minimum of 900 million euros of new investments in the Rijeka shipyard.

TCN reached out to Moroney for comment on the potential deal:

"We are very much aware that the Government of Croatia is actively pursuing a solution for shipbuilding in Croatia and our wish is to progress this exciting proposal with the government and the shipyard. We have already proven that together with Croatian engineers and shipbuilders we can build one of the most sophisticated cruise ships in the world, even under extraordinary circumstances. Scenic Eclipse did not cost Croatian taxpayers a penny and no state guarantees were taken. We finished the ship ourselves and now that we have the knowledge and practical experience, we are very confident that we can build and deliver five more ships in Croatia. The Government is being very cooperative and open with us so I look forward to the positive development and future of Croatian shipbuilding.”

Great news potentially for Croatian shipbuilding, an industry where it has traditionally competed with the best in the world. From Tesla to Rimac Croatia has proved that it can deliver technologies that change and amaze the world. Scenic Eclipse and its fellow polar discovery yachts is the latest and could, just like Rimac, become Croatian top export technology product setting the standards globally.

Make sure to follow our dedicated Made in Croatia page for much more.

The Croatian shipbuilding industry hasn't been doing well in recent years. The Uljanik shipyard in the Istrian city of Pula has been the location of what has often looked like absolutely harrowing scenes of unpaid workers striking and demanding their hard earned wages, and that isn't even half of it. Following an extremely concerning and turbulent period, some excellent news has come out of Rijeka's formerly ailing 3 Maj shipyard - a new ship has officially been contracted.

As Morski writes on the 20th of December, 2019, the keel for this brand new polar cruiser, which is a sister ship to the one built in Pula's equally troubled shipyard Uljanik, is due to be laid out during the second quarter of next year.

The new vessel 3 Maj is set work on is a new polar cruiser for the Australian shipowner Glenn Moroney, the owner of Scenic. This more than encouraging news was confirmed for Novi list by the director of the 3 Maj shipyard in Rijeka, Edi Kučan.

The launch of this vessel should take place in the first quarter of 2021, and 3 Maj will be responsible for the building of the ship's hull and partially equipping the polar cruiser.

Details of the value of the contract are not yet publicly known, and the Rijeka shipyard's director Edi Kučan merely said that they were very satisfied with the deal.

He also noted that Moroney intends to build four more such vessels, which opens up the possibilities for further work for 3 Maj, Novi list reports.

Could this mark a turnaround for the Croatian shipbuilding industry as a whole in 2020? After tumultuous times and extremely difficult financial periods, as well as tussles with the state, it's high time that this industry in particular got a break, and 3 Maj's new jobs might just be the beginning of a positive change for the coming year.

Make sure to follow our dedicated business and Made in Croatia pages for much more.

As Poslovni Dnevnik writes on the 30th of April, 2019, Croatian Finance Minister Zdravko Marić said on Tuesday that he still needs to see if there really is specific interest from the Chinese shipbuilding company, whose representatives are visiting the ailing shipyards in Pula (Uljanik) and Rijeka (3 Maj), saying that it's too early to be able to say anything and that we "need to be completely realistic".

When aked by a journalist about the expectations of the Croatian Government, given that a delegation from the Chinese shipbuilding company China Shipbuilding Industry Corporation (CSIC) has visited the Uljanik and 3 Maj shipyards, Marić said that first of all, we should be realistic and after CISC's representatives get a proper look at the state of affairs with those shipyards and answers to the questions they are interested in, we will need to wait and see what their response to all of it will be.

At this point, it's still too early for that, he added, recalling yesterday's introductory meeting between the Croatian prime minister, his ministers and the aforementioned Chinese delegation at Banski Dvori in Zagreb, where everything was transparent and very clearly presented.

"A really high level team from the perspective of that company has arrived, but on the other hand, we need to be completely realistic. So, today they will spend all day in both Rijeka and Pula and then after that, of course, we can't expect it immediately but within a reasonable time frame, they'll determine what they saw, state what they think about it, and whether or not there is a certain level of interest,'' said Marić when answering journalists' questions after attending the annual European Investment Bank (EIB) press conference.

The CSIC delegation, headed by Hu Wenming, arrived at the enfeebled Uljanik on Tuesday morning, where talks with the members of Uljanik's management board and its supervisory board took place. Assistant Minister of Economy Zvonimir Novak has also been participating in these talks.

Several representatives of the aforementioned Chinese company arrived at Uljanik as early as Monday afternoon, where they viewed the plants and made an unofficial assessment of the capabilities of the Pula shipyard's production facilities, ie, they got better acquainted with its technical capabilities, the processes that take place there, the technology and its general capacities.

What will coe of the visit is anyone's guess so far, but despite suspicion from some, an injection of Chinese money could truly be Uljanik's very last hope.

Make sure to follow our dedicated business page for more information on Chinese-Croatian business relations, Chinese projects and investments in Croatia, working, doing business and investing in Croatia and much more.

ZAGREB, April 17, 2019 - Rijeka Commercial Court on Wednesday once again adjourned a hearing that should have determined whether conditions have been fulfilled to launch bankruptcy proceedings at the 3. Maj shipyard, and the next hearing is scheduled for 5 June.

The latest adjournment was requested to make it possible for the new management to find funds for interim financing as in the recent days much has been done regarding efforts to conclude new contracts and find new business opportunities.

The postponement was okayed today by unionists, the dock's director, Edi Kučan, temporary bankruptcy trustee Zdravko Ćupković and a representative of the Strojopromet company, which is one of the creditors that together with the Fina financial agency has proposed the launching of bankruptcy proceedings.

The total debt of this shipyard, based in Rijeka, was 134.6 million kuna on 16 April.

The company's account has been blocked for more than 220 days.

Participant's in today's hearing told the court that 3. Maj, which became a part of the Uljanik Group a few years ago, would not be in financial distress if Uljanik had paid it back the 520 million kuna it borrowed from the Rijeka dock.

The first bankruptcy hearing was originally scheduled for February 6 but was shifted to February 26, then to March 12 and again for March 28 with the explanation that one should wait for a possible agreement on the payment of wages and the continuation of production.

More news about the shipbuilding industry can be found in the Business section.

From the construction of Pelješac bridge to planning to build a car factory in southern Dalmatia's Neretva valley, to displaying interest in potentially rescuing the enfeebled Croatian shipyards Uljanik and 3 Maj, the Chinese are no strangers to showcasing their investment interest in Croatia.

Croatia has earned itself a less than positive reputation among foreign investors, alright, let's not be so politially correct and say that Croatia is a burning hot mess in the eyes of foreign investors. ABC has come to mean ''Anything but Croatia'' in foreign investment circles, and many are simply bypassing the country entirely. That's not to talk about local, Croatian investors who have been dragged through the proverbial mud twice or even thrice the amount. Given the somewhat depressing statistics, just why are the Chinese suddenly so deeply interested in investing such huge sums of money in Croatia?

While many have welcomed the money-laden offers of the Chinese, others have remained cautiously optimistic, and some have made no qualms about being vocal in their dismay at the thought of the Chinese coming and ''taking over'' by investing heavily in Croatia's many pressing strategic projects. The motives that push the Chinese towards closer and closer ties with Croatia tend to end up as mere hearsay and solacious gossip in the comment sections of various portals, but what do the experts believe?

As Novac/Marina Karlovic Sabolic writes on the 12th of April, 2019, the Chinese are truly incredible people. They come to Croatia every ten years, and the Croats immediately forget about all of the Chinese "bofl" goods they've spent their lives purchasing and throwing away. They suddenly become blissfully unaware of the dreaded "Made in China" mark that everyone gets so sick to the back teeth of seeing plastered all over basically anything. Instead, their innermost desires display blurry images of an ailing Uljanik, of Tito's rotting memorial complex in Kumrovec, of Rijeka's port, and even football stadiums, Slobodna Dalmacija writes.

Does anybody bother to ask in this country what the Chinese will ask for in return, however? Entering into the dubious and somewhat unpredictable world of Croatian shipbuilding, constructing a much needed railway line and maybe rescuing a port in Rijeka all before dinner time will come with a price tag, and likely a hefty one. The situation when that bill inevitably arrives is one that tends to be what fills the militant online naysayers with fuel, and dread.

''Don't be afraid, China will not demand that the Communist Party be established in Croatia or that it rules the country,'' prof. Dr. Vlatko Cvrtila, one of the most prominent Croatian geopolitical experts, stated. He also added that in its long-term strategic plans, China really doesn't have any sort of idea of ​​introducing a single-party system in the countries in which it invests its money. Their interest, claims Cvrtila, is of quite another nature.

''The Chinese don't invest because they have a lot of money and they want to go around giving it out. There's no philanthropy in international relations. All they invest in is related to their global strategy of creating influence and linking the Eurasian world in a continental way. By investing in infrastructure, ports, roads and railways, they enable their goods to reach their customers more easily,'' says Cvrtila.

Such an approach, he points out, is legitimate for a country that has boasts such great economic potential at this time like China does. Their mega-project, the Silk Road, which would increase the possibility of land transport, aims to reduce overall dependence on maritime traffic restrictions.

Cvrtila notes the US administration's estimates and warnings that China will one day turn its massive economic influence into strategic power as well. This is something that United States, which is already competing with Russia, doesn't think well of. However, China is now quietly placing all of its cards on the economic side of the story.

''In order to maintain its economic growth, China must have a market. In infrastructure projects, they actually make the market more widespread. China can't stop, while it's riding the bike it needs to rotate the pedals. The Chinese are present everywhere where they can create prerequisites for the distribution of goods. In Greece, they're in the ports, in Montenegro, they're dealing with the construction of a motorway, in Croatia, they're building Pelješac bridge. This is a win win situation for everyone, because in the long run, any investment in infrastructure can improve a country's economic performance,'' says Cvrtila.

China has, therefore, created the 1 + 16 formet in Southeastern Europe where its usually large-scale investments help countries that otherwise don't have a lot of foreign investment.

''Europe has survived a difficult financial crisis and there is no "free finance" which would enter JI Europe. China's investment is actually beneficial for Europe, because along with China, the European Union has developed non-competitive but increasingly strategic economic relations, realising in time that they [the Chinese] can contribute to its economic growth,'' emphasises Cvrtila.

Croatia, according to him, is fortunate because it is strategically quite well positioned: it is closer to the heart of Europe than it is to Northern Europe. And, de facto, it is located at the intersection of the roads between the East and the West.

Unfortunately, Croatia hasn't used its geostrategic advantage yet. LNG terminal stands, as do the new train lines. It's also important to revitalise the Port of Rijeka so that Croatia can profit in the fast transport of goods to European consumers. We don't have our own investments, Europe has no capacity anymore, which is why the Croatian Government is seriously considering deals from China,'' concludes Cvrtila.

Therefore, there's no need for Croatia to be afraid of the Chinese, but rather actually use them for its own interests.

Make sure to follow our dedicated business page for more information on Chinese-Croatian relations, Chinese business plans in Croatia, and much, much more.

Click here for the original article by Marina Karlovic Sabolic for Novac/Jutarnji

As Poslovni Dnevnik writes on the 10th of April, 2019, Chinese interest continues to grow as the Republic of Croatia and China opened a new, ambitious chapter of economic and trade relations on Wednesday, deepening their relationship even more after talks between the two prime ministers who both considered the talks to be a "fruitful turnaround".

Relations between Zagreb and Beijing initially reached a higher level after the Chinese company China Road and Bridge Corporation was chosen as the much anticipated Pelješac bridge builder.

The two countries readily signed six agreements, which cover the segments of rail, agriculture, digital technology and tourism. Four more will be signed on Thursday and Friday down in Dubrovnik at the 16 + 1 summit.

"We have signed a memorandum on a much more serious, transparent and easier cooperation between companies, on the transfer of capital from China to Croatia, as well as a two-way transfer, and the possibility of capital from Croatia being invested in China. This opens up the possibility of trust and a much stronger and more serious transfer, investing and manufacturing, and we've been able to talk about other large-scale structuring projects, especially given the fact that a Chinese company is building Pelješac bridge,'' said Croatian Economy Minister Darko Horvat for RTL.

He also noted that at this point in time, Croatia has a bilateral economic exchange with China which is somewhere close to the level of a billion euros, in a much larger deficit on the Croatian side.

Horvat also confirmed that Chinese companies are offering to be the ones to construct the Rijeka-Zagreb line.

"This project has to happen, the Chinese side has shown its interest. Whether that is going to come in the shape of a long-term concession agreement or in another model... Minister [Oleg] Butković is engaged in very intensive negotiations [on that matter] at the moment,'' stated Horvat.

In conversation with RTL, Horvat also revealed that they now have a clear signal that there is interest from the Chinese side to invest in Croatia's burdened shipyards, Uljanik and 3 Maj, in Pula and Rijeka.

"The real conversations are just starting, and I'm sure we will have some concrete figures tomorrow,'' he added briefly.

When asked whether or not Chinese could end up becoming the strategic partner needed to finally save Uljanik, the economy minister simply said that nobody was trying to hide the fact that the Chinese had been called upon.

Make sure to follow our dedicated business and politics pages for more information on the blossoming China-Croatia relations, why some remain suspicious, why the European Commission has raised its eyebrows at the fact that a Chinese company is building a bridge funded primarily with EU money, and much more.

ZAGREB, August 21, 2018 - Workers at the Uljanik shipyard – all 4,500 of them – will go on general strike at 7 a.m. on Wednesday because they didn't receive their pay for July on Tuesday and they will strike at their work stations, Istria, Kvarner and Dalmatia Union shop steward Marina Cvitić said after the last round of negotiations between the management and union failed.