German parliament approves rescue of shipbuilder Meyer Werft, lawmakers say

5:48 am Wednesday, September 11th, 2024

By Maria Martinez and Christian Kraemer

BERLIN (Reuters) – Germany’s lower house of parliament and the state parliament of Lower Saxony have approved the rescue of Meyer Werft, one of the world’s biggest cruise ship builders, members of the budget committee told Reuters on Wednesday.

Although the shipbuilder’s order books are full, it has an almost 2.8 billion euro ($3.1 billion) financing gap due to the delayed effects of a demand dip during the COVID-19 pandemic.

WHY IT’S IMPORTANT?

The German government and that of the state of Lower Saxony, in northwestern Germany, want to rescue Meyer Werft to secure thousands of jobs in the structurally weak Emsland region.

Around 17,000 jobs are directly and indirectly dependent on the family-owned shipbuilder, which has a 229-year history.

Meyer Werft lists one of its main clients as U.S. entertainment giant Disney. In 2010 and 2011, it built the Disney Dream and the Disney Fantasy, the largest ocean liners ever made in Germany.

BY THE NUMBERS

German federal and state governments will invest 400 million euros ($442 million) in Meyer Werft for an 80% stake.

The plan also includes guarantees for 2.6 billion euros in loans.

KEY QUOTES

“Meyer Werft is one of the largest and most modern shipyards in the world. It is of immense importance for German shipbuilding,” German Economy Minister Robert Habeck said.

“It is a temporary aid,” said opposition politician Andreas Mattfeldt, from the Christian Democrats CDU, adding that the shipbuilder has a successful business model.

Green politician Sven-Christian Kindler highlighted that many jobs are at stake and this is a key industry for Germany.

“An agreement is now planned this week,” Kindler said.

WHAT’S NEXT?

Final details will need to be clarified before the package is confirmed in writing in the next few days.

($1 = 0.9057 euros)

(Reporting by Christian Kraemer, Klaus Lauer and Maria Martinez, Editing by Rachel More and Alexander Smith)