- Disney orders four ships from struggling Meyer Shipyard
Financially struggling Meyer Werft secures major order: It will build four cruise ships for Disney Cruise Line by 2031, the largest order in the company's history. The Papenburg-based shipyard did not disclose the order's value.
The four ships are scheduled for delivery between 2027 and 2031. Details on design, names, and routes are currently in development. Bernard Meyer, the company's owner, signed the agreement with Disney last week.
340 jobs to be cut due to billion-euro funding gap
Meyer Werft is facing the most severe crisis in its over 200-year history and needs to secure more than 2.7 billion euros in financing for new shipbuilding projects by the end of 2027. The company is in talks with banks, as well as the federal government and the state of Lower Saxony about a possible rescue. Saner Ralf Schmitz said the company needs fresh money by September 15.
The financial difficulties stem from contracts for cruise ships signed before the COVID-19 pandemic, which do not account for the dramatic increase in energy and raw material prices since then. Additionally, in the industry, 80 percent of the construction price is paid upon delivery of the ship, so the yard has to bridge the financing with loans.
In early July, the management of Meyer Werft agreed with the works council and IG Metall on a restructuring concept. 340 out of over 3,000 jobs are to be cut. Furthermore, a supervisory board and a group works council will be established, and the company's headquarters will be moved back to Germany from Luxembourg.
Lower Saxony's Minister of Economics, Olaf Lies, sees the new major order as a positive sign for the shipyard's future. "This order demonstrates once again that the order situation at Meyer Werft is excellent, and the customer base is absolutely solid. The cruise segment is booming," said the SPD politician. This gives cause for optimism about the shipyard's further restructuring.
Andreas Hensen, chairman of the works council, expressed a similar sentiment: "These new orders are a further strong and positive signal for the future of jobs in Papenburg for the works council and all colleagues."
Meyer Werft's order book now stands at over 11 billion euros, with ten cruise ships, one research vessel, and the steel construction of four offshore converter platforms. "Our order book grows with the new orders to over 11 billion euros," said owner Bernard Meyer. "With a 95 percent export share, we are developing positively against the current German trend." The orders also mean "a lot of prosperity and tax revenue for Germany."
The Commission, as stipulated by this Regulation, will likely need to adopt implementing acts to provide the necessary rules for Meyer Werft's application of this major order from Disney Cruise Line.
Given the substantial order from Disney Cruise Line, Meyer Werft may seek assistance from the Commission to ensure they comply with any relevant implementing acts for this Regulation.
