Shipbuilding - Prime Minister Weil: "The future of Meyer Werft is at stake"
In the struggle to save the financially troubled Meyer Werft, Niedersachsen's state government emphasizes that the company should move its headquarters back from Luxembourg 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 lot of public money. "Then we must also demand that the owners address legitimate concerns of the state," said the SPD politician.
Weil emphasized that the renowned yard for its large cruise ships is in an existential crisis. "Without ifs and buts: This is a serious situation and the future of Meyer Werft is at stake," he said. The decision for the location in Luxembourg was made by Meyer Werft in 2015 to avoid having to establish a supervisory board.
Meyer Werft is demanding support from the Federal Government
The state therefore 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 this future and make it possible. We do this because we want to save jobs, not only for the local workforce but also for Niedersachsen and beyond," said the head of government. Thousands of jobs depend on the yard, in addition to the local workforce.
Confidential talks are currently taking place with the company and the Federal Government, and future viability assessments 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 is important to know how the customers stand towards the company. "Negotiations are running at full speed in all areas," said Weil.
There is not much time left for a decision given the financial pressures of the company. "We must know very quickly what we are dealing with," said the Minister-President.
Meyer Werft faces a financing gap of 2.7 billion euros
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 aftermath of the Corona pandemic and price increases resulting from the Russian attack on Ukraine. Niedersachsen's Economy Minister Olaf Lies (SPD) stated that an increase in equity and the securing of credits with collateral are therefore in the works.
The contracts for the cruise ships were concluded before the pandemic and do not provide for adjustments to the drastically increased energy and raw material prices. The yard receives around 80 percent of the purchase price only at delivery and must finance the construction with credits in the meantime.
For the Meyer Group, around 7000 people work, of whom about 3000 are based in Emden-Papenburg. Other yards are located in Rostock and in Turku, Finland.
- Minister-President Stephan Weil of Lower Saxony stressed the necessity of Meyer Werft GmbH relocating its headquarters from Luxembourg back to Germany to secure potential state aid.
- Weil acknowledged that Meyer Werft is currently in a critical financial situation and the future of the shipyard is at stake.
- The SPD politician mentioned that thousands of jobs in Lower Saxony and beyond depend on the success of Meyer Werft.
- Weil is engaging in confidential talks with the company and the Federal Government to prepare future viability assessments and secure necessary agreements with banks.
- The company is facing a significant financing gap of 2.7 billion euros due to the Corona pandemic and price increases from the Russian attack on Ukraine.
- Meyer Werft is a crucial player in the global cruise ship industry and a significant economic factor for Lower Saxony.
- The German Press Agency reported that Lies, the Economy Minister of Lower Saxony, plans to increase equity and secure credits with collateral to help Meyer Werft overcome its financial challenges.
- Despite having full order books, Meyer Werft is struggling with the high energy and raw material prices, which are exacerbating the company's financial crisis.
