The Meyer Shipyard in Papenburg, known for building cruise ships, is in a severe crisis despite a full order book. A new report now certifies this traditional company a prospect of restructuring, providing hope for a stabilization of the situation.

A spokesperson for the Lower Saxony Ministry of Economic Affairs stated that the shipyard is fundamentally capable of being restructured. The report of an external expert is required both for the granting of bank loans and for the approval of state guarantees. Meyer Werft itself initially did not want to comment on the report, as they first wanted to inform the workforce. A statement will probably be made on Monday.

The Lower Saxony Minister of Economic Affairs Olaf Lies emphasized the close cooperation with Meyer Werft and its workforce. "The goal is to make the shipyard competitive on the market again within the next three years. This report provides the foundation for that," said Lies.

Already in April, the company had brought the experienced external restructuring expert Ralf Schmitz on board. At the beginning of July, management reached an agreement with the works council and the IG Metall union on a restructuring plan, which includes the reduction of 340 of the more than 3000 jobs. Furthermore, a supervisory board and a group works council are to be established. The company's headquarters, which was relocated to Luxembourg in 2015, is to return to Germany.

According to Schmitz, the company must raise a total of 2.7 billion euros by the end of 2027, including a capital increase of 400 million euros demanded by the banks. CDU parliamentary group leader Sebastian Lechner stated that the state and federal government could grant the necessary state aid based on the report to temporarily strengthen the company's equity and secure the pre-financing of upcoming orders with guarantees.

Despite full order books, the shipyard is in the worst crisis of its more than 200-year history, triggered by the collapse of the tourism industry during the coronavirus pandemic. Back then, the company had extended orders in consultation with the shipping companies without taking into account the now increased energy and raw material prices. In addition, the shipyard has to bridge the enormous construction costs with loans, as it receives about 80 percent of the purchase price only upon delivery.

Just a few days ago, the company received a new order from Japan's Oriental Land Company to build a cruise ship for the Japanese market worth over one billion euros by 2028. For Managing Director Bernhard Meyer, it's an important signal for the future viability of his company.

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