Scholz guarantees assistance to Meyer Werft – rescue strategy yet to be endorsed
The federal administration has made headway in discussions with Lower Saxony, the shipyard leadership, the Meyer family, and financial institutions as per Scholz's statement. The Bundestag and the EU Commission still require approval.
The Chancellor boldly asserted at Papenburg that the federal government is taking necessary steps to resolve the predicament. "If everyone follows suit - which I anticipate - we'll get this sorted out." Federal Minister of Economics Robert Habeck (Greens) also displayed confidence. "The shipyard's salvation is nearly within our grasp," he declared on Thursday.
As per media leaks, a substantial majority stake is planned for the federal government and Lower Saxony, with the Meyer family securing a position on the supervisory board and the first refusal right for shares. The rescue strategy aims to augment the equity capital by 400 million euros and have the state assure additional loans.
The shipyard is grappling with a dire situation due to rising energy and raw material prices, among other circumstances, and the majority of ship prices are only settled upon delivery. The company estimates its financial requirements to exceed 2.7 billion euros by year-end 2027.
"Your output isn't the issue," Scholz addressed the employees. "Actually, your order books are overflowing." The quality "surpasses international standards." The Meyer Werft just secured, as per their claims, the largest order in their history: Disney's cruise division ordered four new ships. Delivery is scheduled between 2027 and 2031 for Disney Cruise Line.
Scholz also defended the federal government's participation due to the Meyer Werft's role as a family-owned company in the Ems region of Lower Saxony. The Meyer Werft is "crucial for the maritime economy and shipbuilding industry across Germany." It is also an "arts and crafts gem of Germany."
Currently, the company employs approximately 3,300 people directly, with around 6,000 employees from 200 suppliers - from carpenters to tech companies - in the Weser-Ems region alone, according to the Chancellor. Over 17,000 jobs across Germany rely on the Meyer Werft in various ways.
The IG Metall union applauded the federal and state governments' commitment to the company, despite lacking a formal agreement, as "admirable industrial policy preserving crucial segments of Germany's shipbuilding industry." Berlin and Hannover are offering the shipyard and its personnel "an exceptional opportunity for a new start," explained Daniel Friedrich, district leader of IG Metall Coast.
Scholz emphasized that the federal government and the state would only invest "for a specific period." "We aren't ship builders," he said. The state aims to establish a solid foundation for a prosperous future on a private economic base. This has already been achieved elsewhere with entry and re-entry: "I just need to mention the examples of Lufthansa and TUI. In this respect, this would serve as another example of us making economically sound decisions."
In light of the rescue strategy, the federal government and the Meyer family are expected to engage in significant 'throwing' of resources, aimed at increasing the shipyard's equity capital by 400 million euros. The employees at Meyer Werft have demonstrated their skills, with their order books overflowing and the quality of their work surpassing international standards.
