The Kraljevica Shipyard
“We have always offered flexibility, and have been able to build all kinds of vessels, which helped us to find niches in the market” we signed the contract with the aim of achieving ISO standards. Of course we have to adhere to rigorous procedures when we are building Navy ships, so we are confident that we will achieve our goal in early 2011,” Badzek explains. Lead times are always one of the biggest challenges operationally. “We operate to an average lead time of around 24 months on most vessels; but it is essential to us that we are able to deliver the ship on the right date, and this can be a challenge when we are receiving new orders all the time.” With Croatian interest rates higher than most European countries, Badzek says that the structure of financing is compromised to some extent. “At the moment we have a situation where interest rates are three to four per cent higher than other
countries, which makes loans more expensive, particularly when you are working on a €20 million vessel. At present the only way we can address this problem is by introducing greater efficiency.” Despite the uncertainty, Badzek says that Kraljevica should have a new owner before the end of this year; and whoever takes over the company will be purchasing a business with an order book full through to the end of 2012. “We are currently working on a RO-PAX vessel for a Canadian customer—a one-off 95 metre yacht. At €40 million, it’s the most complex project in the history of the shipyard. We have also signed a contract in Moscow and Tromso to build four fishing vessels, so our new owners will be busy for the next two years,” he concludes. www.brodkr.hr
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