The shipbuilder Meyer Werft in Papenburg might receive state aid to avoid bankruptcy.
In a last-ditch effort to save the shipbuilder, discussions are underway to secure financial aid from the state.
The company, founded in 1795, is facing financial difficulties despite having a good orderbook, including projects like ten cruise ships.
The historical company has been an integral part of the region’s economy, and its potential collapse would have far-reaching consequences.
To stay afloat, Meyer Werft needs to raise over €2.7bn by 2027, as some contracts were made before the pandemic and did not account for increased costs.
The pandemic-induced challenges have significantly impacted the financial viability of long-standing contracts, exacerbating the company’s financial woes.
The German government and Lower Saxony might step in to prevent insolvency, with talks of a potential 90% state takeover until 2028.
The proposed bailout plan aims to inject much-needed capital into Meyer Werft, allowing it to navigate through its current financial storm.
This would involve both governments contributing €200m each and providing loan guarantees of €2.8bn.
The ripple effects of the shipyard’s closure would be felt not only by its employees but also by the local economy and the maritime industry at large.
If this support does not materialize, the closure of the shipyard could leave around 3,300 employees without jobs in Papenburg.
Efforts are being made to find a sustainable solution that ensures the continuity of Meyer Werft and safeguards the livelihoods of its workforce.
