Meyer Werft's Future Is Now Secured Time to Build the Ships

MEYER WERFT in Papenburg is receiving extensive support to secure its economic future. The federal government and the state of Lower Saxony are jointly acquiring around 80 per cent of the shares in MEYER WERFT and investing 400 million euros. They are also planning to provide guarantees

as is customary in other industries and in cruise ship construction throughout Europe - of around one billion euros each to finance existing firm orders in order to stabilize the company. The company has now reached all the necessary agreements with the state, federal government and banks.

MEYER WERFT has been an integral part of the German shipbuilding industry for more than 225 years and is known worldwide for its high-quality cruise ships. It has found it-self in this financial emergency due to the consequences of the coronavirus pandemic, the Russian war of aggression against Ukraine and soaring commodity prices. In addi-tion, 80 per cent of the construction price is usually only paid when the ship is delivered - the shipyard therefore has to finance the construction with loans. The promised guarantees are being used for this purpose. Despite the current financial challenges, the company has orders worth 11 billion euros until 2031 and remains in demand internationally. This emphasizes the importance of the shipyard for the regional and national economy, particularly in terms of jobs and technological innovation.

Safeguarding jobs and continuing operations

The successful refinancing will make it possible to secure jobs at MEYER WERFT and in its extensive supplier network. In addition to the more than 3,000 people directly employed by the shipyard, thousands of other jobs in the region are directly linked to the future of the shipyard through suppliers and service providers. According to independent experts, the existence of more than 20,000 jobs in Germany depends directly and indirectly on the continued existence of the shipyard.

Joint guarantees for stabilization

In addition to the takeover of shares, the federal and state governments are also planning to provide guarantees totaling around one billion euros each. These are intended to help ensure the financial stability of the shipyard and guarantee ongoing operations and future projects. These guarantees are a decisive factor in putting the shipyard back on a stable course. Thanks to this solution, the financing banks can also participate in shaping the long-term future of MEYER WERFT.

Return to private hands sought

Despite the planned takeover of shares by the federal government and the state of Lower Saxony, it is clear that this is not intended to be permanent. Rather, all parties involved are pursuing the goal of transferring MEYER WERFT back into private hands in the long term. The owner family Meyer has been granted a corresponding buy-back right.

‘Our goal is to lead MEYER WERFT and its employees into a successful and secure future. We firmly believe that our company, with its innovative technology and dedicated team, has a future,’ emphasizes Bernd Eikens, CEO of MEYER WERFT. ‘We are confident that together we will emerge stronger from this crisis and maintain our position as one of the leading companies in international shipbuilding. We would like to thank our employees, partners and customers for the trust they have placed in us and for their support in these challenging times.’

‘I have to say that, together, we have achieved something extraordinary. But our work is not yet done, in fact it is only just beginning. We have developed a viable concept and a restructuring plan that now needs to be implemented. There is a considerable amount of homework to be done in the coming months and years to get MEYER WERFT back on track and secure its future and that of all employees in the long term. I am very confident that we will succeed,’ adds Ralf Schmitz.

Lower Saxony's Minister of Economic Affairs, Olaf Lies (SPD), emphasizes: ‘We have faced the greatest of challenges here, which had to be mastered in a very short space of time. I am therefore very grateful and proud of the fact that everyone involved has worked together to create the basis for a successful future for MEYER WERFT and its employees. The fact that the solid financing is now in place on time is the joint success of all those involved.’

The head of the CDU parliamentary group in the Lower Saxony state parliament, Sebastian Lechner, added: ‘The path to reorganization is a major milestone. At the end of the day, there is an unwavering determination to work together to secure the future of Meyer Werft - to preserve both the site and the jobs in Papenburg as well as the important shipbuilding expertise in Germany. We stand together for this goal in Lower Saxony and in the federal government on a non-partisan basis. I am convinced that the shipyard will now quickly get back on its feet and once again embark on a successful, innovative future. The best guarantee for the location is the management of Meyer Werft as a family-run company.’

Lower Saxony's Finance Minister Geralt Heere (Greens) said: ‘Meyer Werft is a key company for the north-west of Lower Saxony and far beyond - this justifies the state's enormous commitment. With this joint effort, we are enabling a sustainable reorientation of the shipyard, which stands for thousands of jobs in the region and innovative ship-building.’

Bernard Meyer expressed his gratitude for the support from the state and federal government, but also pointed to a viable solution for the shipyard if the public sector pulls out again: ‘I am very grateful that everyone pulled together to build this financial bridge for us. However, I am also convinced that we will now be able to correct course under our own steam and will one day be an economically healthy and successful, family-run flagship company again.’

Repost from Meyer Weft Press Releases