Seoul Gazette - German shipyard, rescued by the state, gets mega deal

Swiss cruise line operator MSC Cruises signed a letter of intent with the shipyard for an order of between four and six ships, the government said, with a final contract to be drawn up over the next six months.

"This order will keep the yard busy until well into the next decade," Economy Minister Katherina Reiche said at a press conference.

"This contract secures the future of Meyer Werft and that of all its employees."

With Meyer Werft struggling with falling demand from cruise firms after the pandemic and rising costs following the outbreak of full-scale war in Ukraine, the German government decided to step in.

Berlin took an 80.7 percent share of the firm in September 2024 as part of a rescue deal.

Berlin has emphasised the importance of securing thousands of jobs in the German shipbuilding sector and preserving industrial know-how as the country rearms following Russia's full-scale invasion of Ukraine in 2022.

"We talk about shipyards differently than we did even two years ago because they are systemically important," said Olaf Lies, minister president of Lower Saxony state, where Meyer Werft has its headquarters.

"They are crucial, not only for cruise ship construction, but also for ensuring the defence capability that we want to achieve in Germany."

Asked when the German government might relinquish its shares in the shipyard now that it was on a more secure financial footing, Reiche gave no specific date.

"The aim is to stabilise the shipyard so that it can be released back onto the market," she said.

T.Gil--SG