ZAGREB, November 22, 2018 - Economy Minister Darko Horvat said after the government session on Thursday that currently two serious strategic partners were interested in Uljanik, adding that in the end a decision would be made which partner is better for the Pula-based shipyard.

Asked if there was anything new regarding Uljanik, Horvat told the press there was nothing new. He added that his ministry expected a response from a potential strategic partner from Ukraine Smart Holding Group next week, adding that Italy's Fincantieri had already submitted its letter of intent.

Asked if the decision about a strategic partner would be made before the expiration of the 120-day deadline for automatic launch of bankruptcy procedure, having in mind that only about 20 days remain before the deadline runs out, Horvat said he was the last person to accede to the bankruptcy in Rijeka and Pula. "Until we exhaust all legal options available, there will be no bankruptcy," Horvat said.

Commenting on a reporter's remark that based on guarantees issued early this year, the only options at the moment are liquidation or restructuring and bankruptcy is out of the question, Horvat said he could partially agree with that statement, stressing that the state issued guarantees and was supposed to cover them to keep credibility, otherwise there was no point in issuing such guarantees.

Prime Minister Andrej Plenković on Monday received the owner of Ukraine's Smart Holding Group, Vadim Novinski, for talks on its interest in investing in Croatia's ailing Uljanik shipbuilding group. Novinski requested more detailed information about the current state of affairs in Uljanik and it was agreed that the Economy Ministry, in cooperation with the group's management, would provide it.

The president of the management board of the Split-based Brodosplit shipyard, Tomislav Debeljak, said after talks with representatives of the strike committee at the 3. Maj dock in Rijeka on Tuesday that Brodosplit would decide after due diligence if it was interested in investing in the ailing Rijeka shipyard.

Brodosplit or the DIV Group, owned by Debeljak, has expressed interest in possibly entering the 3. Maj dock together with the Ficantieri shipbuilding company from Italy. When asked outright if he was entering the ownership structure of 3. Maj, Debeljak said that that was a too explicit question and that he had come to the dock to see what could be done.

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ZAGREB, November 20, 2018 - Croatian Prime Minister Andrej Plenković received on Monday the owner of Ukraine's Smart Holding Group, Vadim Novinski, for talks on its interest in investing in Croatia's ailing Uljanik shipbuilding group. Plenković and the Ukrainian investor had a constructive and open talk, the government said in a press release.

Novinski requested more detailed information about the current state of affairs in Uljanik and it was agreed that the Economy Ministry, in cooperation with the group's management, would provide it, the press release said, adding that Economy Minister Darko Horvat was present at the talks.

In the meantime, workers of the Pula-based Uljanik shipyard, who have been on strike over unpaid salaries since October 20, will resume work on November 20, suspending the strike until the end of the month, strike committee chairman Boric Cerovac told Hina on Monday after a meeting between workers and management.

The meeting discussed the shipowners' dissatisfaction with the fact that work on their ships has been stopped, unpaid salaries, and the workers' wish to prove to the government that they want to earn their pay, he said.

At the end of the month, the decision to suspend the strike will be discussed again and it will certainly depend on the payment of salaries for September and October as well the government's endorsement of a restructuring programme the dock, Cerovac said.

He added that the strike might resume even before the end of the month if the dock's problems were not dealt with.

Cerovac said management told workers the restructuring programme would be sent to the government today, but workers were not told when the salaries for September and October might be paid.

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ZAGREB, November 15, 2018 - After a meeting between Prime Minister Andrej Plenković and the management boards of the 3. Maj dock and the Uljanik shipbuilding group, shipyard workers and unions on Thursday, union representative Juraj Šoljić said that workers will continue striking until their demands are met and workers, who received the minimum wage for September, are paid their full wage.

"Even if workers at 3. Maj were to stop their strike, they don't have anything to do," Šoljić said, underscoring that there is no material for them to work with that would enable the continuation of production at that Rijeka-based shipyard. He added that during the meeting with Prime Minister Plenković, workers' representatives reiterated their stance.

Workers are demanding the replacement of the 3. Maj Supervisory Board and the appointment of a new one, comprising two members from Pula and two from Rijeka in addition to the current workers' representative. They are also demanding that the dock's director, Maksimilijan Percan, be replaced, an emergency administration appointed, and all sectors that used to be part of 3. Maj, including the engine factory, be restored as part of the dock, as well as that workers' representative be included in preparing a restructuring plan for the Uljanik Group.

Workers also want the 3. Maj shipyard's separation from the Pula-based Uljanik to be included in the restructuring plan and that it be prepared carefully so that 3. Maj can continue working and contracting new jobs.

Šoljić said that workers want to know what will happen to the ships currently being built at the dock. Over the past two days, we had informal contact with the ships' owner regarding the completion of those ships because they mean life for 3. Maj, he added. He said that workers were told at the meeting that they would be able to participate in preparing the restructuring plan.

The unionist underscored that workers' representatives said that they would not back down from their demand that the Supervisory Board be replaced and a new one appointed, adding that if an agreement was not reached on that point, the state would have to step in.

Šoljić said that the management board had still not prepared the restructuring plan for Uljanik even though it was said that it would be completed by the start of the week. "As far as I understood, the potential partner for Uljanik has to prove its financial capacity for the programme to survive," he added.

He added that they were assured at the meeting that 3. Maj would not be shut down and that negotiations were being held with various partners.

With regard to separating 3. Maj from Uljanik, Šoljić said that it can't be done overnight and that it is necessary to regulate Uljanik's repayment of a 523 million kuna loan given to it by 3. Maj, the completion of the four ships under construction, investment into technology and injection of fresh capital by a new partner, as well as the sale of shares.

I believe that the bids also offer something and I trust that a model will be found for 3. Maj's survival and that if nothing else, it will be privatised and operate independently, Šoljić concluded.

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ZAGREB, November 5, 2018 - More than 1,000 workers of the Rijeka-based 3. Maj shipyard went on a protest march through the city centre on Monday morning, where they are expected to stage a rally and demand that their company be saved from bankruptcy.

The workers, who have called on local residents to join them in their protest, want 3. Maj to resume production, to be separated from the Uljanik Group and a new strategic partner to be found for it. They also want their representatives to be involved in talks with possible strategic partners.

The workers want Uljanik to pay back a 523 million kuna loan 3. Maj gave that Pula-based shipyard, they want 3. Maj director Maksimilijan Percan to resign and the dock's business account to be unblocked.

Striking committee member Juraj Šoljić said that 3. Maj does not have a sufficient number of orders or alternative solutions, noting that workers often receive contradictory information about the shipyard's future, which is why they want the Economy Ministry to state a clear position on the matter.

Economy Minister Darko Horvat said on Monday the state would not give away to partners the shipyards in Pula and Rijeka just because the two docks were currently facing financial difficulties, announcing a meeting with the new management of the Uljanik Group for Tuesday.

Responding to Hina's question if strategic partners were at all interested in the Uljanik shipyard, Horvat answered in the positive. "Fincantieri, Smartholding and Damen have expressed interest at the talks in the 3. Maj dock and some interest in Uljanik. There is interest, but we have to be aware of the fact that we cannot give away the shipyards to partners because of the difficulties in Pula and Rijeka. These docks have the know-how, tradition and brand, which has its value," Horvat said on the fringes of the 13th edition of a conference on managing electric systems.

Asked about what the new Uljanik management can do, the minister said he would hold the first working meeting with the new management as early as Tuesday.

Last Thursday, the group's supervisory board appointed Emil Bulić chairman and Bojan Blagonić and Milko Mihovilović the other two members of the Uljanik Group's management board. "We will see if the new people have new ideas. From our perspective, the position is relatively clear, we know what the state's obligations at this moment are," he said, commenting on possibilities for the enforcement of guarantees which the government has issued for Uljanik.

Speaking of the new overhaul plan, Horvat reiterated that the docks in Rijeka and Pula should be treated differently. "Their situations are entirely different, the situation in Rijeka can be saved, there are contracts for Rijeka, namely strategic partners who want the shipbuilding to continue and local government is not against the continuation of shipbuilding on the 3. Maj premises. As for Pula, there is still confusion there, there is almost no consensus whether we want the shipbuilding to continue there or if we want to turn one part of the dock into a real estate business," Horvat said.

Asked to comment on workers' protest in Rijeka, the minister said his position on this issue was the same as it was a month ago. "The state cannot make any more interventions. The sooner we agree, the sooner there will be a way out of this situation," Horvat said, adding that the state wanted to get actively involved in the overhaul of the shipbuilding in both Pula and Rijeka. "We will help, but legitimately and slowly, after the verification of the restructuring plan by the European Commission," Horvat said.

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ZAGREB, November 2, 2018 - The first step of the new management board of the Uljanik Group is to ensure business continuity for the group, and it is also essential to ensure the continuation of cooperation with ship-owners whose support is vital for the shipyard's business continuity, the new chairman of the three-member management board Emil Bulić said in Pula on Friday.

On Thursday, the group's supervisory board appointed Bulić chairman and Bojan Blagonić and Milko Mihovilović the other two members of the Uljanik Group's management board. They met with the supervisory board and with their predecessors on Friday morning.

"We have assumed the responsibility at a time when the company is in distress and our intention is to create preconditions for the business continuity of the whole group and all our employees as well as business continuity in shipbuilding," Bulić said at a news conference. He thanked all the creditors who, he said, were also essential for Uljanik's survival and had been essential for making sure that the company survived also in the period before embarking on an overhaul plan.

He said that management would start negotiations with the ship-owners whose support is seen by Bulić as essential as well. The new management is going to hold talks with all the relevant state institutions, too.

Asked about models for ensuring funds for unpaid salaries, Bulić said that "the new management is not in a position to make such decisions and they will have to refer this question to the institutions of the Republic of Croatia". "We stepped into office a few hours ago, so we cannot yet comment on a solution to the issue of overdue salaries."

For this issue to be solved, we must reach out to state institutions and we also must take care of Uljanik's long-term interests so as to provide for the future of the company, he added, explaining that the survival of Uljanik is a condition for payment of salaries.

The first step is to hold talks with the Economy Ministry and outline our restructuring plan, which is viable. At that meeting we are going to request assistance in ensuring wages, he said. The overhaul plan is grounded exclusively on ship construction with all the necessary resources, "compensations are certain and necessary, and that is a part of the plan that needs to be hammered out with the government," Bulić said.

Asked about the possible divestiture of the Rijeka-based 3. Maj dock from the Uljanik group, Bulić said the he could not agree with claims that "the divorce of Uljanik and 3. Maj is in the offing". They are part of one group and they act as one company now, he said.

The Uljanik Supervisory Board chairman Samir Hadžić said at the news conference that they expected communication with the government to be better than it used to be.

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ZAGREB, November 1, 2018 - As of Thursday, the Uljanik shipbuilding group has a new three-member management board and the supervisory board will reveal their names on Friday, the supervisory board's interim chairman, Samir Hadžić, told Hina.

According to unofficial information, the new management board members are Uljanik's financial experts who until now held executive positions in the group's companies. "I believe this is the second step in Uljanik's recovery process. The first was made with the formation of the new supervisory board," said strike committee head and unionist Boris Cerovac.

Another unionist, Đino Šverko, welcomed the appointment of the new management board, saying this was an important step for the shipyard's future and that it was extremely important that Uljanik be "organised at all levels."

He said the strike committee would meet on Friday to decide about the next steps. Uljanik workers have been striking for two weeks over unpaid salaries for September and the group's bank account has been frozen again, he recalled.

Management board chair Gianni Rossanda resigned on Tuesday. The day before, the Commercial Court in Pazin appointed two supervisory board members, while the third one was elected by the group's assembly. With three members, the supervisory board can make decisions, including on the company's management.

It is still unlikely that the latest move will substantially improve the situation at the shipyard. The problems are shared by another shipyard, “3. Maj” in Rijeka, whose workers are also on strike due to unpaid wages. The Rijeka shipyard is also part of the Uljanik group.

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ZAGREB, October 30, 2018 - Uljanik management board chairman Gianni Rossanda handed in his resignation to the shipyard's Supervisory Board on Tuesday, according to the information provided by the company, while the strike committee leader Boris Cerovac said that the new supervisory board had spoken with seven possible candidates for Rossanda's successor.

"On 30th October 2018. Mr. Gianni Rossanda submitted his irrevocable resignation to Supervisory Board as President of Management Board of ULJANIK d.d., with its effect from the day of 31st October 2018," Uljanik said in a notice released on the Zagreb Stock Exchange.

Cerovac confirmed for HINA that the newly appointed Supervisory Board at Uljanik had on Tuesday spoken with possible candidates for the chairman in the new management board that would take control of the company upon the dissolution of the incumbent board. According to Cerovvac, most of the candidates come from Uljanik.

In the meantime the shipyard workers entered their second week of industrial action after not receiving their September wages. “Unfortunately we don't have any good news and don't have any information in that regard. Wages still haven't been paid, and we don't know when they will be. I tried to contact the finance director however, he is not answering,” Cerovac said.

He confirmed that shop steward Samir Hadžić would chair the supervisory board for the time being while later that position would be taken up by Nenad Kapuralin until the next general assembly. Kapuralin was elected to the supervisory board at the last general assembly on October 16.

Economy Minister Darko Horvat said earlier in the day that Uljanik's management board would submit a new restructuring plan within ten days which would not include ships whose orders have already been cancelled and that the ministry then would analyse the plan within three or four days.

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ZAGREB, October 30, 2018 -The Rijeka-based 3. Maj shipyard accumulated a loss of 157.2 million kuna in the first nine months of 2018, when its total revenues amounted to 137.7 million kuna, or five times lower compared to the corresponding period in 2017, the company said in a financial statement released on the Zagreb Stock Exchange on Tuesday.

For the sake of comparison, the 3. Maj dock, that is part of the ailing Uljanik Group, posted a profit of 466,000 kuna in the first three quarters of 2017.

In the first three quarters of this year, sales revenue at the Rijeka-based dock came to 79.3 million kuna or down by 83% on the year. Operational losses increased from last year's 4.7 million kuna to 179.5 million kuna.

About a thousand workers on 3. Maj's payroll went on strike last week demanding payment of their salaries for September and the survival of the dock.

The biggest share-owner in the Rijeka shipyard is the Pula-based Uljanik d.d. that holds 88.3% of 3. Maj's equity.

Recently, Economy Minister Darko Horvat said that some of the potential investors in the Croatian shipbuilding industry, such as investors from China, South Korea, Germany, the Netherlands, Italy and Ukraine seem to be more interested in 3. Maj than in investing in the Pula-based Uljanik dock. However, all of them have to first conduct due diligence in Uljanik Group before being able in a position to deliver any business decision and submitting a binding offer, Horvat explained.

On Tuesday, leaders of the strike committee said that they would organise a protest rally in the centre of Rijeka on Monday, 5 November and called on local residents to join the striking workers in their protest.

The agony in Croatia's shipyards has been going on for years, with the crisis hitting a high point earlier this year, when government had to intervene to pay for workers' salaries.

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ZAGREB, October 24, 2018 - Finance Minister Zdravko Marić told a government session on Wednesday that in the period from 2010 to September 2018 the government had issued 7.5 billion kuna worth of guarantees for the Uljanik shipbuilding group, of which 4.29 billion kuna had been activated, while the government said that all contracts on the construction of vessels to which the state collateral referred would be checked together with prosecutors.

ZAGREB, October 22, 2018 - About 1,500 disgruntled workers in the Uljanik shipyard started a strike on Monday morning over the unpaid salary for September, and at the beginning of their industrial action they left the premises of the dock and took a protest walk through the city of Pula.