The German Meyer family, who own the Turku shipyard in Finland, is facing financial difficulties and requires 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. If Meyer Werft goes bankrupt, it could have significant consequences for the Turku shipyard and its subcontractors.
The Turku shipyard employs approximately 10,000 people in Finland and is a major source of export income for the country. It 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 facing challenges 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 biggest customers of Turku shipyard 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 recent completion of a valuable project like Icon of Seas cruise ship has shown that there is still demand for ships from this industry even during uncertain times. The Finnish government and Finnvera are closely monitoring financing advance payments for ships under construction as they know that it’s crucial to ensure that companies like Meyer Werft can complete their projects successfully.
The German government is also involved in supporting Meyer Werft through loan guarantees or direct loans as it recognizes its importance not only to Turkey but also to Germany’s economy as many German companies do business with this company.
Overall, it’s clear that without adequate funding or support from governments and financial institutions, companies like Meyer Werft may struggle financially, potentially leading to job losses and economic instability across industries that rely on them.
