Head of government Weil on Meyer Werft: "Situation is threatening"

Shipbuilding - Head of government Weil on Meyer Werft: "Situation is threatening"

In the struggle to save the financially troubled Meyer Werft, Niedersachsen's state government emphasizes that the company should relocate its headquarters back to Germany. In response to the question of whether this step is a necessary prerequisite for state aid, Minister-President Stephan Weil told the German Press Agency: "Yes, that's how we see it." This involves a significant amount of public money. "Then we must also demand that the owners address legitimate concerns of the public sector," said the SPD politician.

Weil emphasized that the Meyer Werft, known for its large cruise ships, is in an existential crisis. "There's no ifs or buts: This is a serious situation, and the future of Meyer Werft is at stake," he said. The decision to move the headquarters to Luxembourg in 2015 was made to avoid having to establish a supervisory board.

Weil is demanding support from the federal government

The state wants to help secure the company and the jobs. "If we have good reasons for why the company has a perspective, we will strongly advocate for making that future possible. We do this because we want to save jobs, not just in the local workforce but beyond," said the head of government. Thousands of jobs depend on the yard not just in Niedersachsen.

Confidential talks are ongoing with the company and the federal government, and assessments of the future viability of the yard will be prepared. "It's clear: The federal government must also engage if the rescue is to succeed," demanded Weil. In addition, agreements with banks are needed, and it's important to know how the customers stand with the company. "Negotiations are running at full speed in all areas," said Weil.

There's not much time left for a decision given the financial pressures of the company. "We need to know very quickly what we're dealing with," said the Minister-President.

Billion-dollar hole in Meyer Werft financing

Meyer Werft is one of the leading manufacturers of cruise ships worldwide and an important economic factor for Niedersachsen. The order books of the company are full, it is said - however, the yard must close a financing gap of 2.7 billion Euros due to the aftereffects of the Corona pandemic and price increases resulting from the Russian attack on Ukraine. Niedersachsen's Economics Minister Olaf Lies (SPD) stated that an increase in equity and securing loans with collateral are being considered.

The contracts for the cruise ships were signed before the pandemic and do not provide for adjustments to the significantly increased energy and raw material prices. The yard receives around 80 percent of the purchase price only upon delivery and must finance the construction with loans in the meantime.

For the Meyer Group, around 7000 people work, of whom approximately 3000 are based in Papenburg, Emden. Other yards are located in Rostock and in Turku, Finland.

1. The state government of Lower Saxony hopes that relocating Meyer Werft's headquarters back to Germany will be a necessary prerequisite for receiving state aid.
2. Stephan Weil, the Minister-President of Lower Saxony and an SPD politician, believes that if public money is to be used, the owners of Meyer Werft should address the legitimate concerns of the public sector.
3. Weil believes that Meyer Werft, famous for building large cruise ships, is in a critical situation and the future of the company is at stake.
4. The federal government is being called upon to provide support by Weil to help secure the company and the jobs it provides.
5. Meyer Werft, one of the leading manufacturers of cruise ships worldwide, is facing a financing gap of 2.7 billion Euros due to the aftereffects of the Corona pandemic and price increases resulting from the Russian attack on Ukraine.
6. The contracts for the cruise ships were signed before the pandemic, and they do not provide for adjustments to the significantly increased energy and raw material prices.
7. Meyer Werft employs around 7000 people, with approximately 3000 based in Papenburg and Emden, and has other yards located in Rostock and Turku, Finland.
8. Niedersachsen's Economics Minister Olaf Lies (SPD) has stated that increases in equity and securing loans with collateral are being considered to help Meyer Werft close its financing gap.

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