German government considers lifeline for people in difficulty

The German government is considering supporting Meyer Werft, one of the world’s largest cruise ship builders, an economy ministry spokesman said on Wednesday, as the cash-strapped company plans hundreds of job cuts to control costs.

The government is considering granting federal aid to Meyer Werft in cooperation with the state of Lower Saxony, home of the Papenburg shipyard where the more than 200-year-old company is based.

According to Ralf Schmitz, who is responsible for restructuring, Meyer Werft must raise around 2.7 billion euros in the coming years. This sum consists of 2.3 billion euros in working capital and 400 million euros in equity capital, which is needed to cover past losses and restructuring costs.

The exact circumstances of the situation will be assessed before a decision is made, the ministry spokesman said at a press conference in Berlin.

Following a meeting between management and the IG Metall union, both sides said the number of planned job cuts at the shipbuilder had been reduced from 440 to 340, leaving Meyer Werft with a workforce of at least 3,100 workers by the end of 2030.

($1 = 0.9275 euros)

(Reuters – Alexander Ratz and Alexander Huebner, Marc Angrand for the French service, editing by Isabelle Rouquié)