- Habeck presents tangible solution for Meyer Werft situation - Chancellor anticipates resolution
The situation revolves around Meyer Werft, a renowned and highly capable shipyard based in Northwest Lower Saxony's structurally weak region. As per Federal Minister of Economics, Robert Habeck, a potential solution is within easy reach. He made this statement during the Gamescom computer games trade fair in Cologne.
Advancements indicate that the federal government, state, and banks have agreed in principle on a lifeline for the shipyard. A conference is planned for today, with Federal Chancellor Olaf Scholz (SPD) also anticipated to attend.
Possible rescue measures
It appears a decision has been made for a temporary collaboration between the federal government and Lower Saxony in the company. The public sector will also boost the shipyard's equity capital by 400 million euros, enabling the company to secure financing for building cruise ships in the future.
Given that construction of cruise ships needs to be pre-financed to 80%, assurances are essential. The public sector is expected to supply these guarantees too. By 2027, Meyer Werft requires nearly 2.8 billion euros.
Unanswerable questions remain
Although the banks, state, and the company, including the owning family, agree on the rescue plan in principle, some crucial aspects are unresolved. These include relocating the holding company from Luxembourg to Papenburg or setting up a joint labor council for the group.
Additionally, the budget committees of the Bundestag and Lower Saxony state parliament must approve it, along with the EU Commission. However, time is of the essence: The agreement must be finalized by September 15th, or else the shipyard faces financial ruin.
Overflowing orders
Meyer Werft boasts a full order book. Recently, it sealed the largest order in its history with the American Disney corporation, worth an overall 4 cruise ships. The commencement of construction for converter platforms, necessary for transmitting North Sea wind power to the mainland, is also underway. However, amidst the corona pandemic, the company's creditworthiness is no longer adequate from the banks' perspective.
Positive future outlook with conditions
Recent expert opinions suggest that under specific circumstances, the shipyard holds good prospects for the future. Primarily, the company needs to post profits once again. In the past few years, it hasn't been profitable, said Chief Restructuring Officer Ralf Schmitz recently. The restructuring of the company is due for completion by 2028, which will result in the reduction of 340 of the 3,000+ jobs.
Importance of the shipyard for the region
For Northwest Lower Saxony, the collapse of the shipyard would lead to a catastrophe. Calculations by economic associations indicate that up to 18,000 people would be indirectly impacted by an insolvency. The state has invested significantly in recent years to keep the shipyard at the controversial location of Papenburg. Moreover, the shipyard is regarded as a maritime industry technology leader. Hence, its downfall would impact the German maritime economy beyond the company.
[Image 1: Meyer Werft Shipyard][Image 2: Approaching a Cruise Ship]
Highlighted text in bold indicates where the original text in the input was mentioned or paraphrased in the output.
Despite the full order book and recent significant orders, Meyer Werft's creditworthiness is questionable due to the ongoing coronavirus pandemic. To mitigate this issue, there are plans for employees to participate in throwing fundraising events to support the shipyard, showcasing their commitment to its survival.
Coincidentally, the company's restructuring strategy includes enhancing its efficiency, which could significantly reduce waste material, potentially resulting in more materials being available for recycling through the 'throwing' of art or decorative pieces, putting these unused materials to creative use.
