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2014 December 10   16:27

Karelia official says Onega Shipyard to be transferred to Rosmorport

Property of Karelia, Russia based Onega Shipyard that filed for bankruptcy in 2013 is planned to be transferred to Rosmorport, TASS agency reports citing the regional official.

The head of the Republic of Karelia Alexander Khudilainen said the transfer will allow the shipyard to resume work in early 2015.

"The owner of the plant will be a federal structure, which owns some 3,000 vessels. They have a backlog of orders for five years", the news agency quoted the official as saying.

Khudilainen said the transfer has been legally approved. They recruit skilled personnel and "Rosmorport" plans to revive the shipyard in conduction with Damen Shipyards Group.

Onega Shipyard went bankrupt last year. Ex-executives of the shipbuilding company, according to law enforcement officials, allegedly embezzled the upfront payment for the construction of five ships, which eventually led to mounting wage arrears, to more than RUB 23 million as of now.

However, Alexander Khudilainen said, at the verge of bankruptcy the authorities managed to temporarily shut down the shipbuilding plant. At the beginning of next year the shipyard will get electricity and heat supply. "Specialists who after stopping Onega Shipyard had moved to St. Petersburg, are ready to come back," he added.

Onega Shipyard was founded in 1944. The company is located on the shores of Lake Onega in Petrozavodsk. The shipbuilding company was dedicated to construction of export dry bulk carriers, as well as other commercial cargo and passenger ships.

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