The German Government has agreed to bail out Meyer Werft by taking a stake in the shipbuilder.
Newswires have reported that the German Government will acquire a 40% stake in the company, as will the state of Lower Saxony.
The finance amounts to around €200 mill.
Lower Saxony and the German Government will also guarantee 80% of a debt capital credit line totalling €2.6 bill with the banks assuming 20% at their own risk, it was reported.
Meyer Werft ran into trouble during COVID. With around 80% of the purchase price of new ships paid when vessels are delivered, capital was needed during the ships’ construction period.
This rescue deal also comes during a prolonged downturn in the German manufacturing sector, Bloomberg said in a report.
“It’s the firm determination of the Government — of me personally and of my Ministry, which is doing the work here — that Meyer Werft gets the support it requires to continue to build ships,” said German Economy Minister, Robert Habeck.
There is no lack of orders at the yard with both Disney and Carnival Corp’s Carnival Cruise Line ordering a series of ships this year.
