Germany brokered a deal to provide financial support for the shipbuilder Meyer Werft GmbH, a private company that recently secured a follow-up contract with DCL-Disney Cruise Line.
The federal government will acquire a 40% stake in the shipyard, with the state of Lower Saxony also taking an equal share (40%), according to the Economy Ministry. The federal government's investment amounts to ~EUR 200 million (~USD 222 million).
Additionally, the government and Lower Saxony will guarantee 80% of an EUR 2.6 billion credit line for Meyer Werft, while the remaining 20% will be covered by banks at their own risk.
Chancellor Olaf Scholz, who recently visited the Papenburg-based shipyard, expressed confidence in finding a financial solution. Talks with banks, the German parliament, and the European Commission are in progress to finalize the deal.
Meyer Werft, owned by the Meyer family for seven generations and employing ~3300 people, has faced financial challenges since the COVID crisis. The shipyard’s business model, where a large portion of a cruise ship’s purchase price is only paid upon delivery, has led to liquidity issues.
German Economy Minister Robert Habeck reiterated the government's commitment to supporting Meyer Werft, ensuring it can continue its shipbuilding operations. The rescue comes during a broader slowdown in Germany's manufacturing sector, impacting the wider economy.
In addition to its shipbuilding activities, Meyer Werft is contributing to Germany's renewable energy efforts by constructing converter platforms for offshore wind farms near Rostock. The company also announced a new contract in August to build 4 additional vessels for Disney, adding to the 4 already in its order book.