Gdansk Shipyard Sold!

Under the threat of bankruptcy since the European Union rather politely, but firmly requested the historic Gdansk shipyard cut capacity and repay 1.3 billion euros in illegally allocated state subsidies, the shipyard has inked an impressive deal in the eleventh hour to keep itself afloat. In an agreement signed by Andrzej Jaworski, the president of the board of directors of the Gdansk Shipyard, and representatives of Donbass, one of Ukraine's biggest financial and industrial groups, Donbass firm will buy the shipyard for $400 million US dollars. Industrial Donbass Union will acquire 83% of the share capital of the shipyard, with the possibility of buying the remaining 17% from the state.

Representatives could not be happier with the shipyard-saving buyout. Nobody could believe that it was possible to find the investor being able to pay 400 million euros," Jaworski said. "That's four times more than the present shipyard share capital! The Ukranians seem satisfied as well and are likely to pay back state aid rather than cut the yard's capacity, much to Jaworski and others' relief. Donbass apparently intends to not only build ships, but also make large steel constructions and towers for wind power plants.

A politically sensitive site, the shipyard (as surely you must know) was the spawning ground of the Solidarity movement which brought down communism in Poland. After communism kicked the bucket, the previously thriving shipyard almost did as well. Trade unions continually blocked the sale of the yard to foreign investors, subsequent governments avoided radical changes and the yard has hovered on the verge of bankruptcy for years. Despite the impending potential second life of the shipyard, legendarily outspoken Solidarity leader Lech Walesa was less than pleased. It's a crime to sell the historic shipyard to a foreign investor, he said. No one can sell his mother. The Gdansk Shipyard ought to be kept in Polish hands. As you can see, it's a(n Oedipus) complex situation...