Germany Agrees to Save Cruise Ship Builder Meyer Werft Shipyard

Germany has secured a deal to support Meyer Werft GmbH, a struggling shipyard recently awarded a contract to supply ships for Disney Cruise Line. The federal government will acquire a 40 percent stake in the company, with Lower Saxony also contributing the same amount. This agreement includes federal financing of around 200 million euros and a joint guarantee for 80 percent of a 2.6 billion euro credit line, with banks assuming the remaining 20 percent at their own risk. Chancellor Olaf Scholz expressed optimism about finding a solution during discussions with the banks, involving approval from the German Bundestag and the European Commission.

Owned by the Meyer family for seven generations, the traditional Papenburg shipyard employs 3,300 individuals and faced financial challenges during the pandemic due to delayed payments for cruise ships. Economics Minister Robert Habeck emphasized the government’s commitment to supporting Meyer Werft in continuing its shipbuilding operations. The rescue package comes at a time of economic decline in Germany’s manufacturing industry, impacting the nation’s economy as a whole. Additionally, Meyer Werft is involved in constructing large converter platforms for Germany’s energy transition project near Rostock’s Baltic Sea port.

In August, Meyer Werft secured a contract to build four additional ships for Disney Cruise Line, in addition to the previous four on order. The company’s involvement in both shipbuilding and energy projects highlights its diverse portfolio. This development signals potential stability for Meyer Werft amid uncertain times in the manufacturing sector and demonstrates the government’s efforts to ensure the company’s continuity.

Source