Eklund anticipates billion-euro order announcement from Meyer Turku shipyard

Timo Eklund, a specialist researcher from Teollisuusliitto, anticipates news from the Meyer Turku shipyard regarding a billion-euro order in the near future. The order book at Meyer Turku currently extends to 2026. The shipyard is in the process of constructing a second Icon-class cruise ship for Royal Caribbean, with delivery scheduled for next year. Construction of a third Icon-class cruiser is also underway.

The shipyard has been in talks about a new ship order earlier this year and projects that confirmation will come by summer. Eklund notes that the limited number of shipyards capable of constructing large cruise liners supports the likelihood of securing new orders, especially as demand for ships has surged following the easing of the pandemic. He adds, “Other shipyards’ delivery times are now extending into several years. If cruise companies want to acquire new vessels, they should place orders fairly soon. And companies are aware of this.”

Recently, German Chancellor Olaf Scholz visited Meyer’s Papenburg shipyard, where he provided expected updates regarding the shipyard’s restructuring due to financial difficulties. With the German federal government and the Lower Saxony state poised to become majority owners of Meyer’s German operations, only the Turku yard will remain under the control of the Meyer family.

Eklund does not foresee significant investments coming from the German entity, citing the profitability challenges at the Turku shipyard, although he remains optimistic about its future. A key factor for the Turku yard is to negotiate favorable prices on new vessels. The shipbuilding industry has been hindered by a standard practice where a large portion of the payment is received only upon the delivery of the order, leading to financial struggles as costs rise. In 2023, Meyer Turku reported a loss of 106 million euros, following a loss of 19 million euros the previous year. Eklund emphasizes, “The main issue is to ensure that future orders, which we hope to secure, come with a price tag that reflects the rise in costs.”