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German Government Considers Lifeline for Embattled Shipbuilder Meyer Werft

Maritime Activity Reports, Inc.

July 3, 2024

© Prieshof PixEL / Adobe Stock

© Prieshof PixEL / Adobe Stock

The German government is considering support for Meyer Werft, one of the world's biggest cruise ship builders, an economy ministry spokesperson said on Wednesday, as the cash-strapped company mapped out hundreds of planned job cuts to stem costs.

The government is considering federal assistance for Meyer Werft together with the state of Lower Saxony, home of the shipyard in Papenburg where the over 200-year-old company is based.

Meyer Werft needs to raise around 2.7 billion euros ($2.91 billion) in the coming years, according to restructuring chief Ralf Schmitz. This sum is made up of 2.3 billion euros in working capital and 400 million euros needed in equity to cover past losses and restructuring costs.

The exact circumstances of the situation would be assessed before a decision is taken, the ministry spokesperson said at a news conference in Berlin.

Following a meeting between management and the IG Metall trade union, both sides said the number of planned job cuts at the shipbuilder had been reduced from 440 to 340, leaving Meyer Werft with a headcount of at least 3,100 workers by the end of 2030.

($1 = 0.9275 euros)

(Reuters - Reporting by Alexander Ratz and Alexander Huebner, Writing by Rachel More, Editing by Madeline Chambers)