Rescue Aid for German Shipbuilder Approved by EC
State aid for financial bail-out of P+S Werften temporarily approved by the European Commission
The European Commission has authorised under EU state aid rules, a state guarantee backing a rescue loan of €152.4 million for the German shipbuilder P+S Werften in Mecklenburg-Vorpommern.
The aid is in line with EU rules on rescue aid because it is limited in time and scope. The Commission approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Germany within maximum six months.
The Commission authorised a short-term measure to tackle liquidity problems and enable P+S Werften to pay creditors and properly maintain production pending the implementation of a restructuring plan.
P+S Werften GmbH was created in 2010 through the merger of the two long-established German shipbuilding companies Volkswerft Stralsund GmbH and Peene Werft GmbH. It operates two shipyards in Mecklenburg-Vorpommern and employs approximately 1,800 employees. It has been facing financial difficulties for several months, due to financial burdens stemming from past developments and the specific liquidity constraints of shipbuilding.