Crafting vessels on water. - The government aims to assist the struggling Meyer Werft shipyard.
The government won't abandon Meyer Werft in its time of need. Recognizing its crucial significance for the region and employment, they're prepared to lend a helping hand, mentioned government spokesperson Anke Pörksen in Hanover yesterday. However, talks remain to be held to discuss potential assistance.
As per Hanover's "Hannoversche Allgemeine Zeitung" (HAZ), state parliament's budget committee is considering a potential state guarantee of up to 900 million euros for the shipyard. But it's too premature to address possible financial aid or other support, according to Pörksen.
Meyer Werft is facing a financial gap of 2.7 billion euros that must be bridged by 2027. During a rally in Papenburg, Economic Minister Olaf Lies (SPD) revealed that the jump in equity is part of this sum, making it 400 million euros.
The remaining 2.3 billion euros are expected to come from loans, with over 80% still up for approval. Ideally, this sum should be split between the federal government and the state, according to HAZ. Representatives from the Finance and Economics Ministries refused to comment on this report.
The shipyard is grappling with the repercussions of the Corona pandemic and soaring prices because of the Ukraine war. The contract for the cruise ships was signed prior to the pandemic and does not involve alterations due to the substantially increased energy and raw material costs. Meanwhile, the hesitancy of banks in granting ship loans adds to the shipyard's financial burden. It receives roughly 80% of the purchase price only upon delivery and must obtain loans to fund construction in the interim.
Nevertheless, despite a fully loaded order book, restructuring expert Ralf Schmitz was brought on board in spring to downsize the workforce. He plans to eliminate 440 jobs, Bremen's approximately 3,000 employees. This decision is facing opposition from the works council, IG Metall, and the state government. "We're battling for every single job, for the site overall, and for the ongoing existence of this critical shipyard," affirmed a spokesperson for the Economics Ministry. Whether the state could offer financial investment is currently mere speculation.
The shipyard needs assistance
"The shipyard needs aid, and without the state and federal government, it's doomed," stated Heiko Messerschmidt from IG Metall's coastal district. Negotiations are currently ongoing with the state, federal government, and the restructurer. The team from VSM intends to hold talks with the company's leadership regarding a vision for the shipyard's future.
Compared to Meyer Werft's chief competitors, Fincantieri in Italy and Chantiers de l'Atlantique in France, their circumstances differ. While they're predominantly state-owned, these shipyards can easily secure loans at favorable rates. "Even if they're experiencing financial turmoil, they can easily obtain loans," said VSM managing director Reinhard Lüken to the "Neue Osnabrücker Zeitung". "What gives them an edge is their diversified product portfolio. They manufacture not just cruise ships and ferries but also navy ships like aircraft carriers, frigates, and submarines, which ensures they regularly receive government contracts." "That makes them more resilient," remarked Max Johns from the Hamburg School of Business Administration to the "Neue Osnabrücker Zeitung".
