Kraljevica Shipyard, founded in 1729, is ranked the oldest continuously operating shipyard in the world and the oldest industrial operation in Croatia. It has built more than 500 ships and continues to build vessels for international clients. Now Kraljevica is set for privatisation and offers signifi cant potential for investors. Its new owner will be purchasing a business with an order book full to the end of 2012.
One of the shipyard’s strengths is its fl exibility and willingness to take on smaller projects, including custom-built vessels. It has also been steadily investing in new technology, equipment and production processes, and expects to achieve ISO certification early next year. It is currently involved in the most complex project in its long history: a 95-meter custom-built container-passenger ship, budgeted at €40 million for a Canadian customer. This ship will be “the flagship of our shipyard,” Irvin Badurina, General Director of Brodogradiliste Kraljevica explains.
Building wide range of vessels
The shipyard recently built a yacht for a client from Monte Carlo who has already ordered another one, and has signed a €93 million contract with Russian customers to build fi shing vessels over the next three years. Mr. Badurina says, “We are building in the same time at least six different types of vessels that other shipyards are not capable to produce. We are an effi cient, multipurpose operation and we aim to survive for generations.”
Kraljevica Shipyard has three slipways and builds all types of vessels of less than 125 meters in length; it built 95% of the ships for the former Yugoslavia and now for the Croatian navy. It also handles retrofitting, painting and repairs for a wide range of vessels, including in steel and aluminum.
Kraljevica achieved turnover of around €49 million in 2008 and expects similar results this year after a drop to € 40 million last year because of the financial crisis. “We should easily reach € 50 million next year because of our current contracts,” Mr. Badurina says. He adds that one priority is to cut down the number of administrative employees the company now has.
Investors can count on Kraljevica’s exceptional expertise and long tradition. Mr. Badurina says, “We would like to build more yachts here, especially as the local tourism industry grows, and we are looking for investors to help us complete our current projects.” In addition to its well-established track record and strong growth prospects, Kraljevica Shipyard offers investors a chance to be a part of the oldest shipyard operation in the world.