- Scholz states that Meyer Werft remains resolute in their decision.
Chancellor Olaf Scholz affirms that struggling Meyer Werft will receive federal aid. The specifics are still unclear. "However, one thing I can certainly declare today: The federal government will contribute its share in resolving this issue," Scholz stated during a meeting at the shipyard in Papenburg, Lower Saxony.
Scholz views Meyer Werft as an asset too valuable to abandon. As the third-largest economy globally, Germany necessitates a robust maritime sector, and Meyer Werft plays a crucial role as an "industrial monarch."
The rescue hasn't been formally approved yet, but Scholz feels confident that they will manage to collaborate with banks and the EU Commission, securing Bundestag approval for aid as well. He clarified that any government investment would be temporary: "Should the federal government and the state intervene now, it's not with the intention of staying entangled forever. We're not shipbuilders, but aim to set the stage for a prosperous future on a private enterprise basis."
Scholz didn't reveal any anticipated rescue costs.
Lower Saxony's Prime Minister, Stephan Weil, declared: "If we are successful in safeguarding Meyer Werft's future with a combined effort from the federal government and the state, it will represent our most significant investment in a single company ever by Lower Saxony." Meyer Werft employs around 17,000 people and boasts over eleven billion euros in orders, with employment guaranteed until 2030. Weil aims to help the company regain private control once the rescue is accomplished.
Lower Saxony's Minister of Economics, Olaf Lies (SPD), affirmed: "We are safeguarding a vital part of German shipbuilding today."
Maritime Coordinator: Rescue not in the end zone yet
Discussions involve the federal government and the state temporarily investing in the shipyard to boost the company's equity by around 400 million euros. The shipyard also needs assurances to obtain new loans for shipbuilding and thus bridge a billion-dollar financing gap. As per Berlin sources, the federal government and Lower Saxony might each provide around 900 million euros in guarantees and take over 80-90% of the shipyard temporarily.
However, Dieter Janecek, coordinator for the federal government's maritime economy (Greens), highlighted that they have not yet crossed the finish line with the rescue plan. "We still have questions to address, including feasibility studies, complex financing issues, obtaining Bundestag Budget Committee and EU Commission approval, to name a few," Janecek informed the "Rheinische Post." They anticipate achieving a favorable result by mid-September at the latest, but it'll be a close call in the coming weeks.
FDP Opposes Permanent State Participation
The FDP in the Bundestag insists that the state will only provide temporary support for the shipyard. "If there's no other option, it is essential that the state only engages temporarily and then withdraws from the company again," said FDP's economics spokesperson Reinhard Houben. They recounted positive experiences with this during Lufthansa's rescue.
By 2027, the shipyard will require nearly 2.8 billion euros. Due to the COVID-19 pandemic, the tourism market collapsed globally, forcing the shipyard to extend existing contracts with its clients. Although the contracts do not allow for price adjustments to match the soaring raw material and energy costs, Meyer Werft's creditworthiness is no longer considered acceptable by the banks. Since 80% of the ship purchase price is only paid upon delivery of the ship, the shipyard must temporarily finance constructions.
Full Order Book
The shipyard's order book is packed. Recently, the largest order in its history – four cruise ships for the US-based Disney corporation – was secured. Construction on converters needed to transmit offshore wind power to land has also commenced. For the region, the shipyard serves as a vital economic factor.
The Federal Parliament will undoubtedly be involved in the discussion and potential approval of the aid for Meyer Werft, given that Bundestag approval is necessary. Additionally, the prosperous future of Meyer Werft is crucial for maintaining a robust maritime sector in Germany, which is recognized as the third-largest economy globally, and where Meyer Werft plays a significant role.
