Through a guarantee and by becoming a major shareholder, the German Government wants to save its major cruise shipbuilder Meyer Werft. German Chancellor Olaf Scholz and Lower Saxony’s Minister President Stephan Weil confirmed their commitment to help the company during a visit last Thursday.
Meyer Werft states that the government support is part of a restructuring and future concept. The CEO of the company, Bernd Eikens, and the restructuring expert appointed by the company, Ralf Schmitz, declared in a joint statement that ‘the way has now been paved for the start of restructuring and securing the future of the shipyard.’
According to German news medium NDR, the government and the state of Lower Saxony are willing to provide a EUR 900 million guarantee. In addition, the German government will take over eighty to ninety per cent of the shares. Meyer Werft stated that the final details still need to be clarified in talks with the commercial banks.
Also read: Meyer to build four new cruise ships for Disney
Make the shipyard competitive again
The shipyard’s two managers saw the announcement by Federal Chancellor Scholz and Minister President Weil as a ‘key contribution by politicians to give the shipyard and its many thousands of employees and their families as well as business partners secure prospects for the future.’
‘We are also grateful that such a great partnership of responsibility between the shipyard, the family, politicians, banks and employees has succeeded in ensuring the future viability of the company,’ said Eikens and Schmitz in their statement. ‘We now have the opportunity to put the crisis behind us, make the shipyard competitive again and focus on profitable growth.’
Also read: Meyer to build new Disney cruise ship
Family has buy-back right
In addition, the solution that has now been found is also in line with the family’s wish not only to remain emotionally and traditionally attached to the company, but also ‘to continue to influence the development of the company as co-shareholders and with a seat and vote on the newly formed Supervisory Board.’
On behalf of the family, Bernard Meyer thanked both Scholz and Weil. Meyer said in his statement: ‘The solution that has now been found is not easy for the family, but we have always said that the interests of the company take precedence over those of the family. We see a great opportunity to get the company back on track for the future – this is also shown by the pleasing development of the order book to EUR 11 billion in recent months.’
Meyer adds: ‘The willingness of the federal and state governments as well as our associated commercial banks to support us in the form that has now been agreed also shows that we have achieved a special position in shipbuilding with our company over decades. We know our business and see the opportunity for long-term and successful further development at our sites. The agreement on a buy-back right for the family gives us the opportunity to become a family business again. As the second largest company after the public sector and through our involvement in the Supervisory Board, we will constructively support the further development of the shipyard.’
Also read: Carnival orders fifth Excel-class cruise ship at Meyer
Framework conditions
Both the management and the family have announced that they will now move swiftly to implement the solution promised by the Federal Chancellor. The aim is to create the framework conditions for the adoption of the new structures and the start of the reorganisation and restructuring measures as quickly as possible.
Picture by Meyer Werft.
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