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CROS-R-A - Croatia Osiguranje Dd News Story

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Market Cap £n/a
Enterprise Value £n/a
Revenue £384.6m
Position in Universe th / 640

Croatian dock workers strike again over late salary

Mon 22nd October, 2018 10:25am
ZAGREB, Oct 22 (Reuters) - Workers at Croatia's largest
shipbuilding group Uljanik  ULJN.ZA  on Monday held their second
strike in less than two months, this time over unpaid salary for
    In late August, the workers downed tools because of
uncertainty over payments for July and August. Those two months'
salaries were secured after the government reached a deal with a
local bank.*:nL8N1VM3QV
    Uljanik owns two docks, with some 4,000 workers, located in
the northern Adriatic cities of Pula and Rijeka. Some 1,500
started a protest march on Monday through the streets of Pula.
    The shipbuilding group has had liquidity problems in the
last 12 months. In January, the government helped it stay afloat
with state guarantees for a loan worth 96 million euros ($111
    Under European Union rules, no further state guarantees or
direct payments from the budget are allowed.
    Earlier this year, Uljanik chose local firm Kermas Energija
as its strategic partner and submitted a restructuring plan,
which the European Commission rejected as inadequate. Management
has yet to complete another restructuring plan.
    The chosen strategic partner reportedly aimed to convert
part of the shipyard into a tourism business, drawing worker
opposition. Economy Minister Darko Horvat said the government
was also in contact with potential investors from Ukraine, Italy
and the Netherlands.
    Finance Minister Zdravko Maric said last week the state
might have to pay 4.2 billion kuna ($651 million) for the costs
of state guarantees extended to Uljanik in the past.*:nL8N1WY2FR
    Workers control less than 50 percent of the company, with
the state also being a minority shareholder. Other owners
include several local banks and the country's top insurer,
Croatia Osiguranje  CROR.ZA .
    Croatia's once-prosperous shipbuilding industry has
struggled to survive since independence from Yugoslavia in the
early 1990s. It has lost business to Asian shipbuilders, such as
those in South Korea, missing opportunities to modernise and
produce more sophisticated vessels. 
($1 = 6.4485 kuna)
($1 = 0.8684 euros)

 (Reporting by Igor Ilic; Editing by Dale Hudson)
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