Iconic German shipyard saved with state bail-out

Germany’s Meyer Werft, which has been part of Germany’s shipbuilding industry for more than two centuries, is now 80% owned by the German federal government and the state of Lower Saxony, which jointly bought the shares and delivered a pledge to provide guarantees for existing orders.

Blaming its financial woes on the consequences of Covid-19, the Russia/Ukraine war and soaring commodity prices, Meyer Werft said there were orders worth €11 billion on its books until 2031, including 10 cruise ships, a research vessel and four offshore converter platforms.

“In addition to the takeover of shares, the federal and state governments are also planning to provide guarantees totalling around one billion euros each,” said a company statement. “These are intended to help ensure the financial stability of the shipyard and guarantee ongoing operations and future projects. These guarantees are a decisive factor in putting the shipyard back on a stable course. Thanks to this solution, the financing banks can also participate in shaping the long-term future of Meyer Werft.”

The shipyard does not intend to remain in state ownership forever: it says ’all parties involved are pursuing the goal of transferring Meyer Werft back into private hands in the long term’.

“We firmly believe that our company, with its innovative technology and dedicated team, has a future,’ said CEO Bernd Eikens. “We are con-fident that together we will emerge stronger from this crisis and maintain our position as one of the leading companies in international shipbuilding.”

“The path to reorganisation is a major milestone,” said CDU parliamentary group in the Lower Saxony state parliament, Sebastian Lechner. “At the end of the day, there is an unwavering determination to work together to secure the future of Meyer Werft – to preserve both the site and the jobs in Papenburg as well as the important shipbuilding expertise in Germany.”

^{Home page photo: Dimitri Wittman}