German Chancellor Olaf Scholz speaks during a press conference with President of Moldova as part of a visit to the Presidency of Moldova headquarters, in Chisinau, on August 21, 2024. (Photo by Elena COVALENCO / AFP)
Berlin, Germany — The German government is working on a rescue plan for troubled luxury shipbuilder Meyer Werft, Chancellor Olaf Scholz said during a visit to the company on Thursday.
“The government will play its part in finding a solution,” Scholz told workers at the site in the northern city of Papenburg, promising that details of the deal would be finalised soon.
Founded in 1795, Meyer Werft employs 3,300 people in Papenburg and is one of the largest shipyards in the world, with a core focus on building cruise ships.
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But the company has struggled with the rising energy and raw material costs and needs around 2.7 billion euros ($3 billion) to fulfil its order book until 2027, according to German media reports.
Scholz described the company as “an industrial showpiece for Germany” and said it was “important that we are able to continue building such ships in Germany in large numbers at a high level”.
The company presented a restructuring plan in late July and rumours have been swirling for some time that Berlin was willing to step in to keep it afloat.
According to German media, the rescue deal will involve the temporary nationalisation of the company.
Meyer Werft earlier this month said it had secured the biggest order in its history as it was commissioned to build four new Disney cruise ships by 2031.
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Many shipping companies have struggled in recent years as the coronavirus pandemic put the brakes on the cruise industry and then the war in Ukraine sent energy and materials costs spiralling.
In July 2022, the German state acquired the shipyards of MV Werften in Rostock, northeastern Germany, which went into bankruptcy.
Germany also came to the rescue of other companies in the travel sector during the pandemic, such as airline Lufthansa and tour operator TUI.