Temporarily, the vessel is under the care of Meyer Werft.
The German federal government and Lower Saxony are in talks to purchase a significant stake in Meyer Werft, a troubled shipbuilding company, to prevent it from collapsing and potentially leaving tens of thousands of workers jobless. The estimated investment stands at €400 million, with additional guarantees of around €1 billion each from both parties, as reported by the Ministry of Economics.
Last week, the governments announced their intent to intervene temporarily in the shipyard's operations. Minister of Economics Olaf Lies has now detailed the figures, citing the critical impact of Meyer Werft's crisis on over 20,000 jobs in Germany, with half of them located in Lower Saxony. Lies argued, "The state can't just sit on the sidelines." He further emphasized the importance of safeguarding Germany's maritime industry.
Lies assured that the state does not aim to retain control for an extended period. He is optimistic about Meyer Werft's potential to prosper in private hands, stating that "We can easily visualize a prosperous future for the shipyard outside state control." This includes the possibility of the Meyer family regaining ownership of the shares.
By the end of 2027, Meyer Werft must raise nearly €2.8 billion to finance upcoming ship projects. Negotiations to reach these agreements must be finalized by September 15.
The financial instability of Meyer Werft is not due to a lack of orders, but rather to pre-pandemic contracts that do not offer room for price adjustments considering the current surge in energy and raw material costs. Furthermore, in the industry, 80% of a ship's construction price is typically paid upon delivery, leaving the shipyard to financially support the construction with loans.
The proposed investment to save Meyer Werft from collapse would significantly impact Lower Saxony's economy, as half of the threatened jobs are based in this German state. The German federal government and Lower Saxony are collectively providing over €2 billion in guarantees to secure Meyer Werft's future.
