The German government has effectively saved Meyer Werft from financial collapse by acquiring around 80 percent of the shares in the historic shipyard.
With a €400 million investment, along with an additional €1 billion in guarantees, the German federal government and the state of Lower Saxony has provided immediate financial stability to the Papenburg-based shipyard, known globally for designing major cruise ships, including Disney Cruise Line, Royal Caribbean International, and Norwegian Cruise Line.
The intervention comes as Meyer Werft, which has been building ships for over 225 years, has struggled to stay afloat.
“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,” said Bernd Eikens, CEO of Meyer Werft.
He continued, “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.”
Typically, only 20 percent of a ship’s construction costs are paid upfront, with the remaining 80 percent paid upon delivery, making financing the construction process heavily reliant on loans.
The new financial guarantees from the government will enable Meyer Werft to continue building cruise ships and ensure financial stability for ongoing operations.
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As more than 3,000 employees work directly for Meyer Werft, and another 20,000-plus jobs across Germany depend on the shipyard through suppliers and service providers, the financial support will also secure jobs.
Despite the government’s majority stake, the long-term plan is to return Meyer Werft to a private ownership and the Meyer family retains a buy-back right.
Said former CEO and 7th-generation Meyer family member Bernard Meyer, “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,” he said.
Officials stress that while the current situation has stabilized, Meyer Werft’s road to full recovery will require restructuring and long-term planning.
Despite of its financial woes, the shipbuilder still holds orders worth €11 billion through 2031, which are now secure thanks to the government support.
Construction Continues at Meyer Werft
Currently, several highly anticipated cruise ships are under construction at Meyer Werft, include two sister ships for Disney. Disney Treasure and Disney Destiny will be delivered in late 2024 and 2025, respectively.
The 144,000-gross-ton Disney Treasure, which will accommodate 4,000 passengers, is expected to be delivered to Disney Cruise Line ahead of its maiden voyage to the Eastern Caribbean on December 21, 2024.
Disney Treasure Construction
The shipbuilder is also constructing two Excel-class ships for Carnival Cruise Line. The first, a 180,000-gross-ton, 6,400-passenger sister to the new Carnival Jubilee, which debuted at the end of 2023, will arrive in 2027 as the fourth in its class. The fifth in class, at the same gross tonnage, will be delivered in 2028.
Meyer Werft most recently completed Silversea Cruises’ Silver Ray in May. The second Nova-Class ship, capable of carrying 728 guests, made its maiden voyage on June 15 for a 12-night Mediterranean voyage.
Meyer Group, owns Meyer Werft as well as Meyer Turku shipbuilders in Turku, Finland. Meyer Turku’s financial situation is unrelated to Meyer Werft’s and will not be impacted by the bailout.
Appeared first on: Cruisehive.com
