Scholz visits Meyer Werft shipyard in Papenburg to announce new ownership plans

German Chancellor Olaf Scholz is visiting the Meyer Werft shipyard in Papenburg today. According to North German public broadcaster NDR, it is expected that announcements will be made regarding new capital ownership of Meyer Werft by Lower Saxony and the German federal government. Media reports suggest that the state will acquire nearly 90% of the company’s shares, divided equally between the state and federal government, as reported by NDR last week. As a result of this bailout package, Meyer Werft, owned by the Meyer family’s German company, would predominantly become a state-owned enterprise.

Impact on Turku Minimal

The planned bailout for Meyer Werft will not have a direct impact on the shipyard in Turku, according to Juuso Heinilä, CEO of Finnvera, the Finnish government’s special financing company. Heinilä stated that Finnvera is closely monitoring the situation at Meyer Werft but emphasizes that it is a separate entity from Meyer Turku. He expressed hope for a clear solution to Meyer Werft’s issues, enabling the company to continue operations credibly. This is significant as the same financial backers are involved, which could potentially affect Turku.

Heinilä noted that a stable ownership structure and order backlog for Meyer Werft would also stabilize the situation for Turku’s shipyard.

Challenges in Ship Order Terms

Shipbuilders face a major challenge as they typically receive most of the payment only upon delivery of a finished vessel. Heinilä pointed out that while about twenty percent of payment is made in advance, the bulk is not received until completion, leading to significant financing needs during construction. Furthermore, inflation is often not considered in contract prices, even as orders may extend far into the future. Currently, Meyer Turku’s order books are filled until 2026. Heinilä stressed the importance of securing additional orders with sustainable pricing for long-term viability in shipbuilding.