2024-08-13 13:24:26
Meyer Werft, known for its cruise ships, is in the biggest crisis in its 200-year history. A new major order is now giving the company hope.
The financially troubled Meyer Werft has received a new major order: it is to build four cruise ships for the Disney Cruise Line by 2031. According to the company, this is the largest order in the history of Meyer Werft. However, the shipyard from Papenburg in Lower Saxony did not disclose the volume of the order.
The four ships are scheduled to be delivered between 2027 and 2031. Details on design, names and routes are currently being developed. Owner Bernard Meyer signed the agreement with Disney last week.
Meyer Werft is in the worst crisis in its more than 200-year history and must raise more than 2.7 billion euros to finance new ship construction by the end of 2027. Talks are therefore underway with banks, but also with the federal government and the state of Lower Saxony about a possible rescue. The company must receive fresh money by September 15, said restructuring expert Ralf Schmitz at the end of July.
The reason for the financial difficulties is that some contracts for cruise ships were concluded before the corona pandemic and do not provide for any adjustment to the drastic increase in energy and raw material prices since then. In addition, in the industry, 80 percent of the construction price is usually only paid upon delivery of the ship – so the shipyard has to finance the construction with loans.
At the beginning of July, the management of Meyer Werft agreed on a restructuring plan with the works council and IG Metall. 340 of the more than 3,000 jobs are to be cut. In addition, a supervisory board and a group works council are to be created and the company headquarters are to be moved back from Luxembourg to Germany.
In view of the threatening situation for the shipyard, Lower Saxony’s Minister of Economic Affairs Olaf Lies sees the new major order as a good signal. “This order once again shows clearly for everyone: Meyer Werft’s order situation is excellent and the customer structure behind it is absolutely solid. The cruise segment is booming,” said the SPD politician. This gives reason to be confident about the shipyard’s further repositioning.
The chairman of the shipyard’s works council, Andreas Hensen, expressed similar views: “These new orders are another strong and positive signal for the future of jobs in Papenburg for the works council and all colleagues.”
According to Meyer Werft, the order book now includes ten cruise ships, a research vessel and the steel construction of four offshore converter platforms. “Our order book is growing to over eleven billion euros with the new orders,” said owner Bernard Meyer. “With 95 percent of exports, we are developing positively against the current German trend.” The orders also mean “a lot of prosperity and tax revenue for Germany.”