Meyer Werft's lifeline: Disney order to save struggling shipyard
It hasn't been this bad for 200 years. The German shipyard Meyer Werft is fighting for survival and needs to find €2.7 (£2.3) billion within the next three years. The company's chance lies in fulfilling the most significant order in its history for Disney.
The American entertainment giant might save the German shipyard. Disney has placed an order with Meyer Werft to construct four cruise ships for Disney Cruise Line, which is to be fulfilled by 2031.
"These new orders are a further strong and positive signal for the future of jobs in Papenburg for the works council and all colleagues," "says works council chairman Andreas Hansen. Papenburg is a small town in Lower Saxony, where the shipyard is located. The shipyard was founded in 1795.
The newest ship, Disney Treasure, recently left the German shipyard. It features 1,250 passenger cabins and is set to enter service on 21 December. Disney Treasure is powered by liquefied natural gas.
The pandemic hit the shipyard
Tthe shipyard's problems stem, among other things, from the coronavirus pandemic. COVID-19 affected the rising prices of raw materials and energy, and some contracts were signed before the pandemic. As a result, the cost of building ships has significantly increased.
"The shipyard receives approximately 80% of the purchase price upon delivery, so it has to finance the construction with credits temporarily," we read in "Rzeczpospolita".
The federal government and the state of Lower Saxony may financially support the shipyard. There is also talk of laying off 340 people from the 3,000-person workforce.
