Stralsund is driving the shipyard towards financial ruin
After the fall of the MV Werften shipbuilding conglomerate, Fosen-Werft had been a ray of optimism for Stralsund. Sadly, the company didn't meet the city's expectations. In response, the local administration decided to cut ties with Fosen-Werft for good. Literally.
While the German government and Lower Saxony were planning to pump billions into saving Meyer-Werft in Papenburg, Fosen-Werft, a smaller German shipbuilder, found itself in financial trouble. On the same day that Meyer-Werft's salvation was announced, Stralsund's city administration made its decision clear about Fosen-Werft's future: The city had abruptly ended its lease agreement for Fosen's site, which included the massive shipbuilding hall of the former Volkswerft Stralsund. As a result, Fosen-Werft filed for bankruptcy, and the Local Court of Stralsund appointed an administrator.
Fosen moved into the former MV Werften group's industrial area in 2022. At the time, the Norwegian conglomerate's subsidiary was a crucial element in the plan to transform the large shipyard area into a maritime industrial park, hosting numerous smaller businesses. However, Fosen-Werft failed to meet Stralsund's expectations. Only 45 jobs were created, way below the promised 100. Apart from that, the company reportedly underpaid its workers, according to union reports.
According to NDR, Fosen-Werft was also behind on its rent payments to the city. The city administration stated that despite their efforts, Fosen hadn't managed to bring any ship or steel construction projects to Stralsund or create the required number of jobs. Therefore, they decided to end the lease agreement ahead of schedule.
Once the lease was terminated, the city reportedly turned off the power to the company, making it impossible for Fosen-Werft to continue operations and complete orders for a Danish company. An employee of Fosen was quoted saying, "This isn't right."
Stralsund's decision appears to be based on the city's belief that a more suitable tenant could make better use of the large shipbuilding hall. Rumors suggest that repair shipyard Strela Shiprepair, which is also based on the former Volkswerft site, is set to take over. Around 20 companies currently operate at the site, according to Stralsund's city administration.
The city's decision to end Fosen-Werft's lease agreement was largely due to the economy-related issues the company was facing, including failing to meet the promised number of jobs and alleged underpayment of workers. The termination of the lease and subsequent power cut significantly impacted Fosen-Werft's ability to continue operations and complete orders.
