Meyer Werft shipyard seeks government rescue
The 229-year-old German shipyard Meyer Werft, which currently has 11 billion euros of booked orders, is working on a deal with the German government to secure its future
Meyer Werft finds itself in crisis, with the Financial Times (FT) reporting that it needs 2.7 billion euros to complete the construction of the cruise ships in its order book.
Shipyards like Meyer Werft in Papenburg and Chantiers de l’Atlantique near Nantes in west France only receive payment from cruise lines upon the delivery of their ships, meaning the companies must borrow large sums to cover the contruction costs.
According to the FT, Meyer Werft – which previously stated it was already planning to cut 340 jobs in the coming years – directly and indirectly employs some 18,000 people, meaning a closure of the shipyard would have a disastrous impact on the local community.
German chancellor Olaf Scholz said: “We all want to secure the continued existence of the shipyard – and with it everything that depends on it.”
Meyer Werft CEO Bernard Meyer added: “The solution that has now been found is not easy for the family, but we have always said that the interests of the company take precedence over those of the family.”
“We see a great opportunity to get the company back on track for the future – this is also shown by the pleasing development of the order book to 11 billion euros in recent months.”
Werft said the agreement on a buy-back right for the family gives the group the opportunity to “become a family business again”.
Meyer Werft bailout comes following Disney contract
According to sources, the federal government and state government in Lower Saxony want to contribute 400 million euros in equity, secure bank loans with guarantees, and temporarily take over at least 80% of the shipyard.
Meyer Werft had recently won the biggest contract in its history when Disney commissioned it to build four cruise ships that are due to join Disney Cruise Line’s fleet between 2027 and 2031.
