Gov't to create first shipbuilding holding group

Under the scheme, the state treasury will assign a 47% stake of the Gdynia yard to the successful Szczecin yard, said Finance Minister Marek Belka. The Szczecin yard would also control a majority stake in troubled state-owned ship-engine maker H. Cegielski and possibly other firms, Belka said. Szczecin yard president Krzysztof Piotrowski said that it would increase its capital by about 20% this year to raise funds needed to buy stakes in Gdynia and Cegielski. "The holding is the only method to save the sector," he said, adding that the new entity will enable Poland's shipping industry to reach approximately $1.5 billion in annual production over the next four to five years. (Gazeta Wyborcza, page 22, Reuters)