Introduction
Croatia, a country with a rich maritime heritage, is taking decisive steps to revive its once-thriving shipbuilding industry. At the heart of this effort is the 3 Maj shipyard in Rijeka, a historic facility that has been a cornerstone of Croatian industrial identity for over a century. After years of financial turmoil, bankruptcy, and government intervention, the Croatian government has officially opened the bidding process for the privatization of 3 Maj. This move is not just about selling off a distressed asset—it’s a strategic attempt to breathe new life into a sector that once symbolized national pride and economic strength.
The Rise and Fall of 3 Maj
Founded in 1905, the 3 Maj shipyard has played a pivotal role in Croatia’s maritime and industrial development. Over the decades, it built a reputation for constructing a wide range of vessels, from cargo ships to luxury cruise liners. However, like many traditional industries in Europe, 3 Maj began to struggle in the face of rising global competition, particularly from Asian shipbuilders who could offer lower costs and faster delivery times.
The situation worsened in the 2010s, as the shipyard faced mounting debts, delayed projects, and a shrinking order book. The COVID-19 pandemic and the economic ripple effects of the war in Ukraine further strained the company’s finances. By April 2025, the situation had become untenable. One of the creditors petitioned the courts, and 3 Maj was officially declared bankrupt. A court-appointed receiver took over in May, and restructuring and potential sale began.
Government Intervention and the Path to Privatization
Recognizing the strategic importance of the shipbuilding sector, the Croatian government stepped in to stabilize the situation. In January 2025, it executed a debt-to-equity swap worth $10.6 million, effectively taking control of the shipyard. This move was not just a bailout but a calculated effort to preserve jobs, protect industrial capacity, and prepare the company for eventual privatization.
The government’s Center for Restructuring and Sale (CERP) has launched a formal bidding process for 3 Maj. The minimum price for acquiring 100% of the government’s shares is approximately $7.9 million. Interested bidders must also pay a $2,400 documentation fee and submit a $79,000 bid guarantee. The deadline for submitting bids is November 17, 2025.
Conditions for Bidders
This is not a typical asset sale. The Croatian government has clarified that any potential buyer must commit to maintaining the shipyard’s core business—shipbuilding. This condition is designed to prevent speculative purchases or asset stripping. The goal is to ensure that 3 Maj continues to operate as a functioning shipyard, contributing to the local economy and preserving industrial know-how.
This requirement reflects a broader strategy: the government is not merely offloading a financial burden but is actively seeking a strategic partner who can invest in modernization, secure new contracts, and restore the shipyard’s competitiveness on the global stage.
Recent Projects and Capabilities
Despite its financial troubles, 3 Maj has continued to demonstrate its technical capabilities. In recent years, the yard completed two luxury polar cruise ships for Australia’s Scenic Group. These complex vessels required advanced engineering and project management, showcasing the shipyard’s ability to deliver high-value, specialized ships.
Additionally, 3 Maj built two 650-foot self-unloading dry bulk lake freighters for Canada’s Algoma Central Corporation. These projects highlight the yard’s versatility and its potential to serve both commercial and niche markets. Scenic Group has reportedly expressed interest in continuing its collaboration with 3 Maj, suggesting that the yard still holds appeal for international clients.
The Bigger Picture: Reviving Croatian Shipbuilding
The sale of 3 Maj is part of a broader government initiative to revitalize Croatia’s shipbuilding industry. Another major shipyard, Uljanik Brodogradiliste, also fell into bankruptcy and was taken over by the government in March 2024. The state now holds a 97% stake in Uljanik and plans to privatize it before the end of 2025.
Both shipyards have suffered from similar challenges: outdated infrastructure, mismanagement, and a lack of strategic investment. However, they also share significant potential. With the right partners and a clear industrial policy, these facilities could once again become engines of economic growth and innovation.
Challenges Ahead
While the government’s intentions are clear, the path forward is not without obstacles. Attracting serious investors in a highly competitive global market will be difficult. Potential buyers will need to commit capital and long-term strategic vision. They must be willing to modernize facilities, invest in workforce training, and secure new contracts in a market dominated by Asian giants.
Moreover, the legacy of financial mismanagement and labor disputes may deter some investors. To make the opportunity attractive, the government will need to offer clear incentives and assurances. Transparency in the bidding process and a well-defined industrial policy will build investor confidence.
Strategic Importance
Reviving 3 Maj is not just about saving a shipyard but preserving a strategic industry. Shipbuilding is a complex, high-value sector that supports various ancillary industries, from steel production to electronics and logistics. It also provides high-skilled jobs and contributes to national security by maintaining maritime capabilities.
The Maritime-Hub Editorial Team
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Maritime-Hub. Readers are advised to research this information before making decisions based on it.
