German shipyard giant Meyer Werft seeks $2.7 billion in funding to stay afloat

The Turku shipyard, a significant source of export income for Finland, is facing financial difficulties. The German Meyer family, which owns the shipyard through their company Meyer Werft, needs 2.7 billion euros in funding by 2027 to stay afloat. Negotiations for funding are ongoing with the state of Lower Saxony and the federal government.

The Turku shipyard employs approximately 10,000 people and is closely monitored by the Finnish government due to its importance to the economy. The Meyer family acquired the shipyard in 2013 with government assistance after the previous owner faced financial difficulties.

The shipbuilding industry has been challenging in recent years, with rising costs and disruptions caused by the pandemic. Finnvera, which manages export credit in Finland, has over 12 billion euros in guarantee risk related to ship orders. The Turku shipyard’s biggest customers are US-based cruise lines like Carnival Cruises and Royal Caribbean. Despite these challenges, the Turku shipyard has work for the next two years and is expected to receive new orders.

The Icon of the Seas cruise ship was recently completed at the Turku shipyard, a valuable and successful project that demonstrated its ability to deliver high-quality ships despite financial difficulties. The Finnish government and Finnvera are closely monitoring the situation, especially with regards to financing advance payments for ships under construction.

The German government is also involved in supporting Meyer Werft through loan guarantees or direct loans to ensure that it can continue operating as a major employer in Finland and contribute to its economy.

In conclusion, while there are challenges facing both Meyer Werft and the Turku shipyard, their ability to secure funding will ensure their future success as an important source of employment and export income for Finland.