May 19, 2020 - Last week, the key international media covering the tourism and shipbuilding sectors announced that the Eclipse II, the sister ship of the Scenic Eclipse, the most sophisticated and elegant ship of its kind, was being built in Rijeka's 3. Maj. 

Cruise Industry News reported about the steel cutting of the Scenic Eclipse II in Croatia in April this year. Recall, the company also announced it would build five vessels in the next six years in Croatia. 

The independent luxury magazine showcasing the finest and most luxurious things in life, Luxurious Magazine, also published an article about the second coveted discovery yacht from The Scenic Group in their ocean fleet, at the Rijeka shipyard in Croatia. 

Another great insight is shown by Latte, Luxury Australian Travel Trade E-news, who wrote that Scenic is now progressing with developing an expanded five-star yacht fleet under a new Croatian subsidiary called MKM Yachts. Scenic Eclipse II will be the first new ship to be built at the 3. Maj dockyard in four years.

Luxury Travel Advisor, describing themselves as the top travel website for travel agents seeking the very latest in luxury cruise news, luxury destination news, luxury hotel news, luxury airline news, and luxury tour news, did not miss the story about the construction of Scenic Eclipse II.

Besides TCN's report on the same news, many Croatian portals published an article about cutting the steal, adding how the yacht sailed into the port of Rijeka where it will remain on a dead berth until the end of the year and until the next season, i.e., until the coronavirus pandemic calms down.

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

April 24, 2020 - An important day for shipbuilding in Croatia, as work on new luxury polar discovery cruise ship Eclipse II begins. 

“Eclipse II” was ordered by MKM Yachts, a subsidiary of Scenic Group, an Australian corporation that has shipbuilding experience here in Croatia, because their “Scenic Eclipse”, the best luxury vessel of its kind in the world in 2019, was built in the Uljanik shipyard in Uljanik.

Scenic Group has plans to build four more cruisers such as “Scenic Eclipse” and “Eclipse II” in 3. Maj. In total, the value of this project is € 860 million, and this deal represents a new great opportunity for the revival of Croatian shipbuilding and the preservation of hundreds of jobs in Rijeka’s shipyard.

The start of work on Eclipse II, a new polar cruiser for the Australian Scenic Group, was marked in the 3. Maj dockyard, and Minister of Economy, Entrepreneurship and Crafts Darko Horvat, emphasized that the polar cruiser was the first new ship to be built at the dockyard in four years.

Some 1,000 tons of steel were delivered from North Macedonia to the dock required to build the Eclipse II polar cruise ship. Saša Čokljat, managing director of MKM Yachts, a Croatian subsidiary of Scenic, an Australian corporation that commissioned Eclipse II, explained the new business model in which MKM Yachts has taken a small part of Rijeka's shipyard on concession and is using existing infrastructure and knowledge of Croatian shipbuilders in cooperation with Scenic's expert team, to complete the construction of the Scenic Eclipse carbon copy. The project is a result of strong support and partnership with the Croatian Government and the 3. Maj shipyard, Cokljat mentioned in his speech.

Čokljat also pointed out that this great project would have failed if the Croatian Government had not recognizes its potential at the very beginning of the negotiations. Prime minister Andrej Plenković, Minister of Economy Darko Horvat and Minister of Finance Zlatko Marić showed courage and readiness to "think outside the box". That resulted in a project that offers a long-term development perspective to Croatian shipbuilding and the opportunity to preserve rich traditions in shipbuilding, continuity of production and knowledge, as well as hundreds of jobs in Rijeka.

"Today, during the crisis caused by the coronavirus, we are starting a new business that will, we believe, strengthen Scenic's fleet, as well as Rijeka’s shipyard. As other cruising companies put their projects on hold, Scenic Group 3. Maj begins to create a common future for both Scenic and the Croatian shipbuilding industry on a sound basis. I believe the niche for the construction of research cruisers represents a sound direction for the revival of Croatian shipbuilding, its new face in the future. We can be proud that the construction of one of the best ships in the world in its class is taking place right here in Rijeka”, Čokljat added.

"Eclipse II" will be the sister ship of "Scenic Eclipse", a 6-star luxury vessel designed for excursions to both poles, which was voted by critics as the best luxury ship in the world in 2019. “Scenic Eclipse” is expected to arrive in the port of Rijeka between May 2 - 4. and it will remain in Rijeka until the coronavirus lockdown ends.

“Scenic Eclipse” was built and equipped in Uljanik, Pula – but given the development of the situation in Uljanik, the ship was completed by the owner himself instead of the shipyard. At the moment when the ship was only half-finished, Uljanik went bankrupt and into receivership. Instead of collecting 50 million euros in state guarantees, Scenic decided to give back the guarantees, keep the ship and continue construction with its own resources and manpower. A team of Croatian shipbuilding engineers, designers, and about a thousand other experts and workers were assembled working on the completion of the ship on a daily basis. Despite all the difficulties in the process of production, the final result was great, so Scenic Group owner, an Australian businessman Glen Moroney, decided to continue building new cruisers for his fleet right here in Croatia.

Now meet the original Scenic Eclipse.

ZAGREB, September 19, 2019 - During its meeting on Thursday the government authorised the Finance Ministry to issue a government guarantee to the 3. Maj shipyard in Rijeka for a loan to be taken from the Croatian Bank for Reconstruction and Development (HBOR) and/or other commercial banks in the amount of 26 million euro in order to complete the construction of a ship at the dock.

Minister of Economy, Entrepreneurship and Crafts Darko Horvat underscored that the contracted price for a ship being constructed for the Algoma Central Corporation from Canada amounts to 33.36 million euro and that once the shipyard pays back 50 million kuna to HBOR to settle previous liabilities and repays the amount of this latest guarantee, the remainder of the revenue from the sale of the ship will be paid into the state budget.

Horvat added that the Jadranbrod - Croatian Shipbuilding Corporation has positively assessed that the contract with the Canadian client and that no risks have been identified in that contract.

Horvat addressed reporters ahead of the cabinet meeting and informed that there were still two ships at the Rijeka-based dock that will require government guarantees.

He explained that the completion of the two ships will need about 560 million kuna which will set the requirements for the shipyard to continue doing business in an orderly manner and contract new ships in that each state guarantee that is issued must be repaid after each ship is completed and delivered.

Prime Minister Andrej Plenković is travelling to Rijeka on Thursday afternoon and is expected to visit the dock.

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

ZAGREB, September 5, 2019 - Economy Minister Darko Horvat said on Thursday the workers of the 3. Maj shipyard could get their first overdue salaries next week and that the dock's management last night signed a 36.6-million-dollar contract to build a ship for Canada's Algoma.

Speaking to the press ahead of a cabinet meeting, the minister said the payment of overdue salaries would be preceded by an agreement the dock and the Croatian Shipbuilding Corporation - Jadranbrod (HB-J) company were expected to sign early next week.

He recalled that a majority of creditors had agreed to the payment of 15% of their claims from a new loan taken by 3. Maj and to a two-year deferral for the remaining 85%, after which the Croatian Bank for Reconstruction and Development green-lighted the approval of 150 million kuna loan in line with a government decision to give the dock a conditional state guarantee.

For the process to be launched, HB-J, which will monitor the money transfer, and 3. Maj, which will receive the money, need to sign an agreement, Horvat said, adding that the payment of the said 15% was a prerequisite for unfreezing 3. Maj's account, putting it back into operation and finding a strategic partner.

Asked if taxpayers would again pay for shipbuilding, he said they would not. "All the money we set aside for completing ships in (3. Maj) will be returned into the budget and the €5 billion we projected in revenue will stay in 3. Maj's account."

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

ZAGREB, September 2, 2019 - Rijeka's 3. Maj shipyard has signed agreements with suppliers and sub-contractors to defer the majority of its debts or approximately 111 million kuna, which is about 82% of all claims by creditors, so we believe that we have met the government's first condition, the chair of the shipyard's supervisory board, Juraj Šoljić, told Hina on Monday.

Šoljić said that the shipyard's total debt amounted to 138 million kuna, excluding overdue wages and contributions on wages of 34 million kuna, adding that he expected more agreements to arrive by post.

"Without pre-empting the Finance Ministry's decision, we at 3. Maj consider that we have met the government's first condition," Šoljić underscored.

He confirmed that the national electricity provider HEP, which is one of the largest creditors, had signed an agreement to delay 85% of its dues for a period of 2 years while the remaining 15% would be paid to creditors from a new loan to the shipyard. He added that other state institutions had done the same.

Last month the government approved the issuance of a conditional payment guarantee in the amount of 150 million kuna for a loan from the Croatian Bank for Reconstruction and Development in an effort to re-launch production so that ships that have been started at the shipyard can be completed.

The finance ministry will issue the conditional guarantee provided that the requirements for that have been met by September 5.

One of the main requirements is for creditors to agree to accept a payment of 15% of their claims immediately while agreeing not to block the shipyard's bank account for the next two years.

A hearing at Rijeka Commercial Court to determine whether conditions exist to launch bankruptcy proceedings for the shipyard has been adjourned several times, and the next hearing has been set for September 26. In the meantime, the Economy Ministry was obliged by August 29 to define a financial model and other conditions to relaunch production.

A model was to be found that would ensure unfreezing the shipyard's account, to pay workers their overdue wages and to define the completion and payment of incomplete ships with clients.

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

ZAGREB, August 22, 2019 - The Croatian government on Thursday decided to allow the issuance of a conditional payment guarantee in the amount of 150 million kuna to the Rijeka-based 3.Maj shipyard.

Prime Minister Andrej Plenković said that finance-wise it meant that the guarantee would not cause additional costs for the government and it will make it possible for the dock to complete the ships under construction.

The future of that shipyard also creates, to some extent, prospects for Uljanik to continue doing business, Plenković said at the government's meeting.

The intention of this government is to find a strategic partner for 3. Maj, he reiterated.

Plenković recalled that in early August he visited the dock in Rijeka and that he had been informed by the dock's management about the current state of affairs and the future plans. On that occasion the premier said that all what he heard during the talks was encouraging. "Our engagement is intended to help solve the urgent problems now, and in two years' time how long the completion of the ships will take, the survival of shipbuilding in 3.Maj should be enabled, with a strategic partner being found," Plenković said then.

Coming to today's meeting of the cabinet, Economy Minister Darko Horvat said that the purpose of the issuance of the conditional guarantee to the 3.Maj dock would be to help the company to deliver the ships under construction in a timely fashion.

He also said that there were investors who showed interested in the Rijeka-based company.

The finance ministry is due to issue the conditional guarantee only if the necessary conditions are met for that move until 5 September.

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

ZAGREB, August 13, 2019 - The director of the 3. Maj shipyard, Edi Kučan, confirmed to Hina on Tuesday that the management of that Rijeka-based dock would today offer its creditors to sign statements whereby they would accept the payment of 15% of their claims from the dock right away while agreeing not to block the dock's bank account for the next two years over the remaining claims.

This model was proposed to creditors by Assistant Economy Minister Zvonimir Novak at a meeting held in Rijeka on Monday.

According to Novak, the creditors would sign statements whereby they would agree to put on hold most of their claims from the shipyard in the next two years, and the government would in return make a decision to pay the creditors 15% of the amount the shipyard owes them.

Kučan expects the creditors to accept the deal, noting that the meeting was held in good faith.

He is optimistic about 3. Maj resuming production, with two of the preconditions for that being the unblocking of the company's account and the postponement of payment of a part of creditors' claims in the coming period.

Putting on hold the payment of 85% of claims from the shipyard would make it possible for the company to resume production and continue work on vessels whose construction has already begun.

The bank account of 3. Maj, which is part of the ailing Uljanik shipbuilding group, has been blocked over claims in the amount of slightly under 80 million kuna, and the biggest individual creditors are the Finance Ministry and the HEP power provider.

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

ZAGREB, August 7, 2019 - Justice Minister Dražen Bošnjaković said on Tuesday that the government had shown its willingness to help the Rijeka-based 3.Maj shipyard last week when it decided to get involved in efforts to help this ailing company.

"The company's account was blocked due to debts in the amount of more than 150 million kuna. The management has manged to resolve nearly a half of that amount, it has reached agreement with creditors to withdraw their claims. The blockade now refers to some 86 million kuna in receivables. Now it is necessary to ensure funds to deal with that amount and there are several models for that," Bošnjaković said in an interview with the RTL commercial broadcaster.

He explained that after the government expressed its readiness to get involved in efforts to salvage the company, the dock should now agree with clients on the completion of the ships under construction.

The minister also said that it was important for the government to have options to cover the guarantees in case of their enforcement so that it would not be a burden for tax payers.

The money for that purpose could be secured through the sale of the commissioned ships, Bošnjaković added.

"It is necessary to find the best model to resolve the debts towards workers and creditors, and this is the first step paving the way for the future course which includes talks with the clients, ships' sale and the comprehensive stabilisation as well as finding a strategic partner," the minister said after earlier in the day, Prime Minister Andrej Plenković, accompanied by a few cabinet ministers, including him, visited the dock for the talks with the management on how to help the company.

The government will do all it can to help Uljanik, however, the situation in that Pula-based shipyard is completely different, according to Bošnjaković 's explanation.

The clients have shown interest in the completion of the ships under construction in 3.Maj, while clients of Uljanik have cancelled all agreements, according to the minister's explanation.

More news about Croatian shipyards can be found in the Business section.

ZAGREB, August 6, 2019 - Prime Minister Andrej Plenković on Tuesday visited the Rijeka-based 3.Maj shipyard and after he was informed by the dock's management about the current state of affairs and the future plans, the premier said that all what he heard during the talks was encouraging.

Plenković, accompanied by Economy Minister Darko Horvat, Transport Minister Oleg Butković and Justice Minister Dražen Bošnjaković, held the talks with the company's director Edi Kučan who informed them of plans to complete the three ships under construction, two of which are in the 3.Maj dock and one in the Viktor Lenac dock.

Plenković said that the management and workers had showed a high level of motivation to resume the production and complete the vessels as well as to embark on the second stage which will unblock company's account and facilitate efforts to find a strategic partner that will help 3.Maj to have a feasible business model governed by market rules.

"Our engagement is intended to help solve the urgent problems now, and in two years' time how long the completion of the ships will take, the survival of shipbuilding in 3.Maj should be enabled, with a strategic partner being found," Plenković said.

Plenković said that justice, finance and economy ministries and some other expert companies were tasked with seeking a legal framework for the implementation of the government's decision to get involved in the process of unfreezing the dock's accounts and assist in restarting production for the completion of ships already under construction at the dock.

The government's decision of 1 August made the Rijeka County Court adjourn the bankruptcy hearing.

During today's visit to Rijeka, Plenković said that 3.Maj, established in 1905, had a long tradition and was a matter of Rijeka's identity.

He said that he had been informed today that there were about 740 people on the 3.Maj payroll.

Director Kučan said that the shipyard planned to relaunch the production of a bulk cargo ship ordered by a Canadian company and a ship for transportation of trucks and cars.

Kučan said that the completion of the ships would bring about more to the dock than what was invested, and this could satisfy the European Commission's criteria

At the start of the 1 August cabinet meeting, Plenković recalled that the management of 3. Maj had sent a letter to the government at the end of July asking for state guarantees for its account to be unfrozen and for production to restart so ships that are under construction at the dock can be completed. He said that the dock had been restructured in late 2017 in accordance with the rules on restructuring enterprises facing hardships and that the company's account have been frozen for some time.

"Unlike the Uljanik shipyard, 3. Maj is not overindebted and had it not lent money to Uljanik, it would have operated normally because all current and potential buyers have expressed interest and readiness for their ships to be completed and there is interest for new ships to be built too," said Plenković at the cabinet meeting a few days ago.

More news about Croatian shipyards can be found in the Business section.

ZAGREB, August 1, 2019 - The government decided at its meeting on Thursday to get involved in the process of unblocking the account of Rijeka's 3. Maj shipyard, relaunching production and completing the vessels on which work had begun.

The Croatian shipbuilding corporation Jadranbrod was instructed to thoroughly analyse the proposed measures and submit its findings to the Ministry of Economy, Entrepreneurship and Crafts. The ministry will then propose specific measures based on the laws on the budget, state grants and other regulations and will present them to the ministries of finance and justice.

After the harmonisation of the proposed measures, the authorities in charge are required to submit a proposal for the implementation of today's conclusions to the government by August 29.

The 3. Maj shipyard completed the process of restructuring in late 2017, but found itself in financial trouble as a member of the Uljanik Group.

"3. Maj, unlike Uljanik, is not overindebted, and had it not granted those loans to Uljanik it would have been operating normally because both the present and potential buyers have expressed an interest in completing the ships, and there is also an interest in building new ones," Prime Minister Andrej Plenković said.

He said he expected the 3. Maj shipyard to draw up a firm action plan to ensure its operation in the years to come.

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