Despite a strong order book for new cruise ships into the next decade, the future of the Meyer Werft shipyard in Papenburg, Germany, remains uncertain. However, it is looking more likely that a state bailout will happen.
Government May Offer a Bailout
In recent months, there has been talk of potential loans from the state of Lower Saxony or the federal German government. According to a report by news outlet Redaktionsnetzwerk Deutschland, they could both team up to secure the shipyard’s short-term financial future. The shipyard was founded in 1795 and has been led by seven generations of the Meyer family.
| The shipyard’s current financial plight is considered critical. It needs a cash injection by mid-September just to pay workers’ wages. The report suggests the state and federal governments could combine to take a 90% share of the shipyard until 2027 or 2028. |
They would share the total cost of €400m. The governments could then give the shipyard loan guarantees of about €2.8 billion to complete its cruise ship orders. Sources told local media that the state of Lower Saxony would likely take the lead in this.
Some of Meyer Werft’s ship projects were inked before the pandemic and haven’t been adjusted for the much higher energy and materials costs since. The shipyard employs about 3,300 workers.
The shipyard has commitments for ten cruise ships, including a new order for four ships from Disney Cruise Line announced a week ago.
The Disney Treasure, part of an earlier Disney Cruise Line order, recently left the Papenburg shipyard ahead of a December 2024 launch.
The Disney Destiny is also under construction and is expected to be completed next year. Other ongoing cruise ship projects include two Carnival Cruise Line Excel class ships.
This shipyard has also built ships for Royal Caribbean, Norwegian Cruise Line, Celebrity Cruises, and other companies.
