Germany Agrees to Bail Out the Meyer Werft Shipyard
Germany has thrown a lifeline to Meyer Werft GmbH, the privately held company best known for constructing vessels for the Disney Cruise Line fleet.
Yesterday, the federal government announced it would acquire a 40% stake in Meyer Werf, as will the state of Lower Saxony. According to Economy Ministry officials (via Bloomberg), the financing from the federal government will total $222 million.
Photo:ship & offshore.net
Additionally, the government will “guarantee 80% of a debt capital credit line totaling $2.87 billion.”
COVID-19 Almost Destroyed Meyer Werft
Located in Papenburg, Germany, the Meyer Werft Shipyard has struggled to recover following the COVID-19 pandemic. With the cruise line industry decimated by the pandemic, banks began to shy away from lending the shipyard money.
Photo credit: Meyer Werft
“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,” Economy Minister Robert Habeck said.
Photos credit: Meyer Wert
With government funds to tide it over and the cruise line industry largely recovering, Meyer Werft has a path forward.
The Shipyard Recently Reached a Historic Deal With the Disney Cruise Line
Last month, the shipyard announced that it had reached an agreement with Disney to construct four additional ships for the Disney Cruise Line.
Meyer Werft and Disney reach a massive agreement. Photo: Thomas Mazloum on LinkedIn
Since the launch of the Disney Dream in 2010, Disney Cruise Line has worked closely with Meyer Werft. The shipyard is currently finishing up Disney Treasure, which will embark on its maiden voyage this December, and preparing for the debut of Disney Destiny, which is scheduled to launch next year.
According to Meyer Weft, the new Disney Cruise Line deal was the highest order value in the shipyard’s history.
Photo: Thomas Mazloum on LinkedIn
Buoyed by the government, and with its Disney deal intact, it looks like Meyer Werft will now be able to sail forward.
