2024-08-23 10:16:33
Chancellor Scholz
Federal government wants to save ailing Meyer Werft
Updated on 22.08.2024 – 14:36Reading time: 3 min.
According to Chancellor Olaf Scholz, the Meyer Werft shipyard, which has fallen into financial difficulties, is to be rescued. The federal government is “part of the solution,” he said.
Federal Chancellor Olaf Scholz (SPD) has promised to help rescue the ailing Meyer Werft shipyard in Papenburg. “If everyone pulls together – and I have no doubt about that – then the federal government will contribute its part to the solution,” said Scholz (SPD) on Thursday at a company meeting in Papenburg. Details still need to be clarified because the approval of the Bundestag and the EU Commission is still missing. “But the federal government is contributing part to the solution,” assured the Chancellor.
The federal government, the state of Lower Saxony and the owners have been negotiating with the banks in recent weeks, said the Chancellor. “We will not leave Meyer Werft alone.” The shipyard is not just any company, but an “industrial crown jewel” whose problem does not lie in the quality of its products.
Scholz also described the shipyard as being systemically important for the maritime economy in Germany. This is a prerequisite for the EU Commission to approve state aid. “I am sure that the Meyer Werft here in Papenburg will continue. You have my support,” stressed the Chancellor. Economics Minister Robert Habeck (Greens) had previously expressed optimism that the shipyard could be saved.
According to insiders, the federal and state governments want to contribute a total of 400 million euros in equity, secure bank loans with guarantees and temporarily take over at least 80 percent of the shipyard. A few details still need to be clarified. The budget committees in Berlin and Hanover also need to agree.
The deal includes conditions such as a right of first refusal for the Meyer family if the public sector pulls out again in about three to four years, the Reuters news agency learned from insider circles. There are also certain guarantees in terms of job security for employees. The final solution is expected to be in place by around mid-September.
Reinhard Houben, the economic policy spokesman for the FDP parliamentary group in the Bundestag, considers the foreseeable state entry to be “justifiable” because it is only temporary. “There is a clear exit strategy, the state will be out again in 2027,” Houben told t-online on Thursday. “It is clear to us: At the end of the commitment, there must be a black zero, the federal government must not make any losses.”
The deputy leader of the Liberals in the Bundestag, Christoph Meyer, pointed out that “some open questions still need to be clarified with the EU Commission and the banks.” In addition, “the main responsibility lies with the state of Lower Saxony, the federal government can only act subsequently on this regional economic policy issue,” Meyer told t-online.
Because the tourism market collapsed worldwide during the pandemic, the shipyard had extended the duration of existing orders in consultation with its customers. However, the contracts do not provide for price adjustments to reflect the drastic increase in raw material and energy prices. Due to the losses, the banks no longer considered the company’s creditworthiness.
In shipbuilding, 80 percent of the purchase price is only paid when the ship is delivered. The shipyard therefore has to finance the construction in the interim. The shipyard needs almost 2.8 billion euros by 2027.
However, the shipyard’s order books are full. Just a few days ago, the largest order in the company’s history for four cruise ships for the US Disney Group was completed. Construction of converters, which are necessary for transmitting wind power generated on the high seas to land, also began recently.
Lower Saxony’s Prime Minister Stefan Weil said at the company meeting about the planned rescue: “The ball is not in the net yet.” But they are working hard on the final solution. “We are planning a massive commitment,” he said, referring to Lower Saxony, but did not give any figures. This is the largest commitment that the state of Lower Saxony has ever made to save a company.