- The Administrative Authority is striving to safeguard Meyer Werft
Chancellor Olaf Scholz guarantees assistance to Meyer Werft, a struggling shipyard, with the federal government stepping in. The specifics are still under discussion. In a gathering at the shipyard in Papenburg, Lower Saxony, Scholz, an SPD politician, stated, "The federal government is committed to playing its part in resolving this issue." He emphasized, "Meyer Werft is a valuable asset we won't abandon." Germany's position as the world's third-largest economy relies on a robust maritime sector.
Scholz is currently in negotiations with banks over new ship orders' financing. He also mentioned consultations with the Bundestag and discussions with the EU Commission. However, Scholz expects all parties involved to cooperate, stating, "Papenburg's shipbuilding and the surrounding area have a promising future ahead." He left the specifics of the rescue plan unspecified.
Financial strain
The tourism industry collapse during the pandemic forced Meyer Werft to extend contracts with customers by agreement. However, these contracts do not provide for price adjustments given the spike in raw material and energy costs. As a result, the company's creditworthiness is no longer considered viable by banks.
Interim financing for ship construction is essential as 80% of the purchase price is paid only upon delivery of the ship. By 2027, Meyer Werft estimates it will require nearly 2.8 billion euros.
Thriving orders
Despite financial difficulties, Meyer Werft boasts full order books. Just a few days ago, the company secured its largest order ever for four cruise ships for the Disney Corporation in the U.S. Construction on converters, necessary for transmitting wind power from sea to land, has also commenced.
An abandonment of the shipyard would be detrimental not just for the region but also beyond. An estimated 18,000 employees directly and indirectly rely on the shipyard for employment.
The SPD, with Scholz as its politician, is the political party that Scholz represents, emphasizing the federal government's commitment to help Meyer Werft. Scholz, in his negotiations, stresses the importance of cooperation from banks, Bundestag, and the EU Commission to secure Papenburg's shipbuilding future and Meyer Werft's rescue plan.
