German shipyard Meyer Werft gets a government lifeline

Wednesday, 11 Sep, 2024 0

German shipbuilder Meyer Werft has got a lifeline from the federal and state governments, with much needed cash injections.

The Economy Ministry Germany’s says the federal government will take a 40% stake in the shipbuilder for €200 million, while the state of Lower Saxony will match that with another 40% stake.

This will open up loan guarantees of up to €2.6 billion with the two governments covering about 80%.

Banks will assume the risk for the remaining 20%.

“It’s the firm determination of the government – of me personally and of my ministry – that Meyer Werft gets the support it requires to continue to build cruise ships,” said Economy Minister Robert Habeck.

Meyer Werft requires at least €2 billion in short term working capital and for restructuring the business.

Fortunately, it has a full order book for new cruise ships lasting several years.

Last month, it announced a new ship contract to build four more vessels for Disney Cruise Line, adding to four already under way.

The shipyard current has work almost to the end of the decade for a total of 10 new cruise ships.

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