German state rescues cruise ship builder at border near Groningen

The German government is doing everything it can to save the Meyer Werft shipyard in Papenburg. The shipyard, right on the border with the Groningen region, is one of the largest cruise ship builders in the world. It employs 3,100 people, including an unknown number from the Netherlands.

The government in Berlin and the state of Lower Saxony are willing to commit an amount of 900 million euros. In addition, the German government will take over 80 to 90 percent of the shares, reports say German media.

German Chancellor Scholz traveled to Papenburg via Groningen Eelde Airport this afternoon to announce the news at the shipyard. According to him, it was never a question of whether the German government would help the shipyard, but only a question of how it should be done. “Germany, as the third largest economy in the world, needs a strong maritime sector,” said the Chancellor. He called the yard “an industrial crown jewel”.

The Meyer family’s centuries-old garden, for which the River Eems was previously dredged and widened, has been in financial trouble since the crown crisis. After a few high-profile infections on cruise ships, cruises were canceled and shipping companies stopped ordering new ships.

With this Yes the sector under fire from climate activists. But the order book in Papenburg is satisfactorily filled again. For example, the American billion-dollar company Disney ordered four large cruise ships. The problem, however, is that Meyer Werft has to front the costs of building the ships themselves. This amounts to approximately one billion euros per cruise ship. The money for this, the shipyard previously mentioned, is lacking; the money would run out by mid-September.

Now that the German state has come to the rescue, that problem seems to have been solved. It means that the shipyard, which has been a family business since it was founded in 1795, will now be a state-owned enterprise. It will hold that status until at least 2027.

In Papenburg it is emphasized that the millions of support are not only important for the garden itself, but also for all suppliers in Germany and in the east of Groningen, reports RTV North. Around 18,000 people work for the suppliers in total.

The trade union IG Metall has previously feared a mass strike. A spokesman now says the financial contribution is a “necessary solution”.

Although this includes a lot of state aid, Chancellor Scholz does not expect any problems with the European Union. The German parliament, the Bundestag, and the state parliament of Lower Saxony have yet to officially approve it.