Germany Vows Support for Shipyard

BERLIN – Chancellor Olaf Scholz announced on Thursday that the German government will intervene to assist Meyer Werft, a prominent shipyard facing financial difficulties despite having solid orders for new cruise ships. Located in Papenburg, the shipyard employs over 3,000 workers and has built 58 cruise ships, including recent agreements with Disney Cruise Line for four additional vessels. The company has reported full order books through 2028, yet it struggles financially due to the upfront costs associated with ship construction. Scholz highlighted the impact of the COVID-19 pandemic on the shipyard's financial health, emphasizing its importance to the shipbuilding sector in Germany, the largest economy in Europe. During a visit to the shipyard, he praised the innovative designs of Meyer Werft's ships, likening them to "little cities." He noted that approximately 17,000 jobs across the country are linked to the shipyard's operations. Negotiations are ongoing between Meyer Werft's management, banks, and the state of Lower Saxony, with Scholz indicating that significant progress has been made. However, he acknowledged that further detailed work is necessary to finalize the support plan. Reports suggest that the federal and state governments may temporarily acquire stakes in the company to facilitate a capital increase. Scholz reassured that the government’s involvement is intended to stabilize the shipyard for a future return to private ownership, stating, “We are not shipbuilders,” but are committed to laying a foundation for a sustainable future.