- Federal authorities and the local administration aim to acquire an overwhelming majority stake in Meyer Werft.
The authorities in the Federal Government and Lower Saxony are looking to purchase around 80% of the ailing Meyer Werft for a sum of 400 million euros, disclosed Lower Saxony's Minister of Economics, Olaf Lies, during a session in the Hannover state parliament. In addition, both parties are set to supply guarantees to prevent the company from collapsing. Each guarantee is estimated to amount to about one billion euros. Last week, the federal government and state had mentioned their intentions to momentarily intervene in the shipyard. Lies now supplied specific details.
Over 20,000 employment positions in Germany are under threat.
Lies defended the planned rescue measures, stating that the shipyard's predicament poses a direct and indirect threat to more than 20,000 jobs in Germany, with approximately half of them situated in Lower Saxony. "We cannot afford to be spectators," remarked the SPD politician. Moreover, the German maritime sector needs to be safeguarded.
Lies clarified that the state does not aim to serve as the primary shareholder of the shipyard indefinitely. "We envision a promising future for the shipyard under private ownership," he remarked. This scenario also includes an opportunity for the Meyer family to reacquire the shares.
The Meyer Werft, recognized for its luxury cruise liners, needs to amass nearly 2.8 billion euros by the end of 2027 for financing new ship construction plans. These agreements need to be sealed by September 15th.
It was revealed that the company's predicament is not due to a scarcity of orders. However, some ship contracts were finalized prior to the Corona pandemic, and they fail to provide for price adjustments that align with the surged energy and raw material costs. Furthermore, commercial vessels usually receive 80% of their construction price only upon delivery, leading the shipyard to rely on loans for the interim financing of construction.
The following rescue measures, announced by Lower Saxony's Minister of Economics Olaf Lies, aim to protect over 20,000 employment positions in Germany, with half of them situated in Lower Saxony. Lies clarified that the state does not intend to serve as the primary shareholder of Meyer Werft indefinitely, envisioning a promising future for the shipyard under private ownership.
