Federal Chancellor Olaf Scholz has promised federal support to Meyer Werft, the shipyard facing a severe crisis. During a company meeting at the shipyard in Papenburg, Niedersachsen, Scholz, a member of the SPD, assured that “the federal government will do its part in the solution.” He emphasized that Meyer Werft is a crucial asset that must not be abandoned. Germany’s position as the world’s third-largest economy requires a strong maritime industry, he added.
Scholz indicated that discussions are ongoing with banks regarding the financing of new ship orders. Additionally, the Bundestag and the EU Commission need to be consulted. He expressed clear expectations that all involved parties will cooperate, stating, “Shipbuilding here in Papenburg and throughout the region has a future.” However, Scholz did not provide specific details on how the rescue will be implemented.
Need for loans due to pandemic impacts
The shipyard had extended existing orders due to the global collapse of the tourism market during the pandemic. However, the contracts did not account for the significant increases in raw material and energy prices. As a result of these losses, the company’s creditworthiness was questioned by banks. Shipbuilding typically requires financing of 80% of the purchase price until delivery, necessitating interim financing for the shipyard. Meyer Werft needs nearly 2.8 billion euros by 2027.
Full order books and significant projects
Despite the financial challenges, Meyer Werft’s order books are full. Recently, the company secured its largest-ever order, for four cruise ships for the US-based Disney Corporation. Additionally, the shipyard has started constructing converters needed for transmitting wind power generated at sea to land.
The closure of Meyer Werft would have severe consequences for the region and beyond. According to previous reports, up to 18,000 jobs are directly and indirectly dependent on the shipyard.
