Despite a robust order book for new cruise ships extending well into the next decade, the future of Meyer Werft shipyard in Papenburg remains precarious.
A state bailout appears increasingly probable, as discussions of potential loans from the state of Lower Saxony and the federal government of Germany have intensified.
According to a report by Redaktionsnetzwerk Deutschland, both governments may collaborate to secure the shipyard's immediate financial stability, sharing the total cost of EUR 400 million. In addition, they could provide loan guarantees totaling ~EUR 2.8 billion to ensure the completion of Meyer Werft's cruise ship orders. Local sources indicate that Lower Saxony is likely to take the lead in this rescue effort.
Founded in 1795 and operated by seven generations of the Meyer family, the shipyard is facing a critical financial situation, requiring a cash infusion by mid-September to meet payroll obligations. The report suggests that the state and federal governments could take a 90% stake in the shipyard, potentially maintaining this share until 2027 or 2028.
Meyer Werft's current financial struggles are exacerbated by several cruise ship projects initiated before the pandemic, with contracts that have not been adjusted for the significant increases in energy and material costs. The shipyard employs ~3300 workers and has commitments for 10 cruise ships, including a recent order for 4 vessels from DCL-Disney announced last week.