- The German Parliament, or Bundestag, approves the commencement of Meyer Werft's operations.
The Budget Committee of Germany's Parliament has laid the groundwork for Meyer Werft's multi-billion-euro salvage operation. Known for its cruise ships, the Papenburg-based company is currently grappling with an existential financial crisis. The budget overseers in Berlin reportedly agree, as per German Press Agency reports, that the federal government can contribute to the stabilization efforts with the proposed 200 million euros.
Another 200 million euros is expected from Lower Saxony, but its budget committee requires approval first. Both the federal government and the state aim to offer guarantees of around one billion euros each to secure loans.
Bridging a financing gap of nearly 2.8 billion euros
As SPD budget holder Dennis Rohde noted, temporarily financially propping up the shipyard safeguards its future and thousands of jobs. Meyer Werft serves as a crucial engine for the maritime economy, employing around 3,500 people directly and over 10,000 indirectly in the supply industry. With the federal government and the state jointly taking on the challenge of resolving the company's financial issues.
By the end of 2027, Meyer Werft needs to secure almost 2.8 billion euros for financing new ship constructions. Deadlines for reaching agreements are set for September 15. The crisis is not due to a lack of orders, but rather the inability to adjust contracts for new ships signed before the coronavirus pandemic to the significantly increased energy and raw material prices since then. Moreover, in the industry, 80% of the construction cost is typically only paid upon delivery of the ship, leaving the shipyard to temporarily finance construction with loans.
Strategically valuable shipyard
According to sources in parliamentary circles, the federal government also has strategic interests in the rescue: In light of potential geopolitical escalations, the shipyard facilities could potentially be utilized for naval purposes and hold significant weight in military shipbuilding. Economically, however, the federal government anticipates ongoing losses for the shipyard in the years 2025 and 2026, even with the implementation of restructuring plans.
There is no set timeline for the state's involvement. However, from both Berlin and Hannover, it is indicated that the shipyard should eventually leave public hands in the long term.
The Budget Committee of Lower Saxony's Landtag is considering providing additional funding, but approval is needed first. The strategic value of Meyer Werft, both economically and potentially militarily, is a factor in the federal government's interest in the company's salvage operation.
