Belying its financial woes, earlier this week MEYER WERFT announced its largest ever order.
Disney Cruise Line has contracted another four cruise ships, due to be delivered between 2027 and 2031.
The ships’ names, designs, and itineraries are still under development, MEYER WERFT said.
“We are very happy to continue our partnership with Disney Cruise Line and build four additional outstanding ships over the next seven years. We now have eight ships for Disney Cruise Line in our order book, which reflects the trust in our capabilities and hard work of our team,” said Bernard Meyer.
“Our Disney cruise ships are the true ambassadors for our brands and beloved by families the world over,” added Thomas Mazloum, President, New Experiences Portfolio and Disney Signature Experiences.
“As we embark on this ambitious and unprecedented expansion for Disney Cruise Line, we are delighted to work with MEYER WERFT once again.”
MEYER WERFT started its relationship with the deliveries of the ‘Disney Dream’ and ‘Disney Fantasy’, in 2010 and 2012, respectively.
In 2022, the first ‘Wish’ class cruise ship ‘Disney Wish’ was handed over. Another two sisterships, ‘Disney Treasure’ and ‘Disney Destiny’ are currently under construction in Papenburg and will be delivered in 2024 and 2025, respectively.
With this new order, MEYER WERFT has contracted 10 cruise ships, a research vessel and four offshore converter platforms, which will keep the yard occupied until 2031.
Despite having a full orderbook, cash strapped MEYER WERFT held a meeting on 5th August, which included the senior management and works council, German union IG Metall and regional, state and the federal government officials.
At the meeting, the future direction and restructuring of the company was discussed. The shipyard’s management expressed its gratitude for the participation and support of all those present, which represented a vote of confidence in the future of the shipyard and the location.
“We are very grateful for the close and constructive co-operation with the political representatives from the municipalities, state and federal government, and feel the common will to support the shipyard here in Papenburg and make it fit for a successful future. We have a real partnership of responsibility,” said Bernd Eikens, MEYER Group CEO.
He made it clear that Papenburg will remain the headquarters of the group as a whole and that speculation about a relocation to Rostock was not correct. The management has also welcomed the concept of a supervisory board being set up.
“This is only about technical updates in the corporate law structure. Papenburg will remain the home of the Group,” Eikens confirmed.
At the discussion, all participants agreed that MEYER WERFT has a future. Both German Chancellor, Olaf Scholz (SPD) and the Prime Minister of Lower Saxony, Stephan Weil (SPD) recently emphasised the importance of the shipyard in public statements and also stated their willingness to support the company’s efforts to turn its finances around.
The meeting was convened to discuss the recently submitted Deloitte restructuring report draft. It was described and welcomed by the management as a decisive step for the realignment and preservation of jobs.
The draft held out the prospect of a positive future for MEYER WERFT, which was endorsed by the owning family.
The chairman of the works council, Andreas Hensen, said: “In the current tense situation, it is important that the political representatives stand up for jobs and the safeguarding of the site across party lines and in a united manner. The fact that politicians have also sent this clear message today is an important signal; especially to our colleagues!”
Thomas Gelder, First representative of IG Metall Leer/Papenburg, added: “The employees of MEYER Werft have fulfilled all the requirements for a new start. Now our colleagues are expecting a clear signal from politicians that ships can also be built in Papenburg in the future.”
Germany’s Green MPs, Meta Janssen-Kucz (MdL), Nicolas Breer (MdL), Julian Pahlke (MdB), and Tammo Lenger (Chairman of the Leer District Council), commented: “The representatives of Bündnis 90/Die Grünen, who took part in the round table at MEYER WERFT, are aware of their partnership of responsibility.
“The long-standing demands of the Greens for more transparency and co-determination, as well as the relocation of the company headquarters from Luxembourg to Papenburg and a new company structure are a good basis for the future and thus the safeguarding of jobs and ultimately also of the Ems master plan.
“The restructuring report, the realignment, also with regard to new sustainable technologies and new orders, make this clear. MEYER WERFT has an outstanding economic significance for the entire region and far beyond,” they stressed.
Members of the German parliament, Tiemo Wölken (MEP), Anja Troff-Schaffarzyk (MP), Nico Bloem (MP) and Helmut Geuken (chairman of the SPD district parliament group Leer), said: “In this difficult time, we stand by the employees who have given everything for the success of the shipyard and the economic upswing of the region. The report gives the shipyard a good perspective and, above all, a future.
“This can only be achieved through close co-operation between all those involved. The shipyard was and is successful because it builds the best ships with the strong workforce, not because it builds the cheapest. Politically, we are doing everything we can to secure the future of the workforce, jobs and the Papenburg shipyard location.
“It is now important that all those involved and politicians work together across party lines for the necessary measures and make clear decisions quickly. The employees and their families have a right to this,” they said.
MEYER Group had revealed that due to the increased costs of building cruise ships after the pandemic and due to the war in Ukraine, the shipyard needs to raise more than €2.7 bill to finance the shipbuilding projects.
The group’s banks also require €400 mill in new equity. Discussions are due to resume after the German summer break.
Just a couple of days before the meeting, on 3rd August, Disney Cruise Line’s ‘Disney Treasure’ (144,000 gt) was floated out of the giant shipbuilding hall. She is the second of three new cruise ships ordered by Disney and is a sistership to the first – ‘Disney Wish’ – delivered in 2022.
The vessel is 341 m in length with an overall width of 39 m. She has 1,246 passenger cabins and suites with a pax capacity for around 4,000, plus 1,555 crew.
As with the first ship, ‘Disney Treasure’, and an under-construction sistership ‘Disney Destiny’, due to be delivered in November, 2005, are all LNG powered.
Disney Cruise Line has also launched partnerships for its next phase of growth. For example, the company has formed a partnership with Singapore Tourism for at least five years and in 2025 will introduce the ’Disney Adventure’, a 208,000 gt cruise ship – the former ’Global Dream’ – which was building for Genting Hong Kong in its own yard in Germany before the group went bankrupt.
She will have accommodation for about 6,700 pax and 2,500 crew and will operate three- and four-night cruises from Singapore.
In addition, the owner and operator of the Tokyo Disney Resort, Oriental Land, also announced a Disney partnership to build a cruise ship to operate from Japan.
As a result, a fourth ’Disney Wish’ class cruise ship was ordered at MEYER WERFT and is expected to commence cruising by early 2029.
With this latest order, as well as two large cruise ships for Carnival Cruise Line, MEYER WERFT highlighted its strong orderbook stretching through 2031.
