MSC Cruises has secured a €10 billion contract with Meyer Werft, ensuring shipbuilding projects continue until 2033, boosting the European shipbuilding sector.
The renowned German shipbuilding company Meyer Werft has signed a monumental agreement with Swiss cruise giant MSC Cruises, valued at €10 billion (approximately $11.7 billion). This contract will last until 2033 and was announced by German Minister of Economics Katherina Reiche in Berlin.
This agreement marks a historic turning point for Meyer Werft, which has faced significant challenges in recent years. Under the terms of the contract, shipbuilding projects at the Papenburg shipyard are confirmed to continue until 2033, with options for two additional projects extending to 2035.
According to the ministry's statement, the massive order includes the construction of four to six new-generation cruise ships. It is anticipated that the slipway and outfitting capacity of the Papenburg shipyard, located near the Dutch border, will reach full capacity by 2035.
Meyer Werft was on the brink of bankruptcy due to financial strains from the COVID-19 pandemic and the war in Ukraine. The shipyard was rescued last year through the intervention of the German Federal Government and the State of Lower Saxony, which injected €400 million in capital, acquiring an 80% stake in the shipyard and providing a credit guarantee of €2.6 billion.
Minister Reiche stated that the restructuring process for the shipyard is planned to be completed by the end of 2028, emphasizing, "Our ultimate goal is to stabilize and make the shipyard competitive and to return it to the private sector (re-privatization)." This substantial order from MSC Cruises is viewed as a significant vote of confidence for the European shipbuilding industry.
Source: www.denizhaber.com
