VSM-Statement on the anticipated temporary majority state shareholding in Meyer Werft.

In an earlier Statement, VSM has already commented on the causes of the problem, the importance of the Meyer Werft for Germany’s a maritime industry as a whole and the positive market prospects in the cruise segment. In the meantime, the shipyard’s strategic importance and positive economic prognosis have been confirmed by independent experts and there is a broad cross-party consensus on this at both state and federal level.

The restructuring plan, which has not yet been finally approved, provides for the federal government and the state to contribute equity capital of € 200 million each and to provide the usual guarantee instruments for existing orders. This step fulfils the conditions required by the banks for construction time financing and the down-payment guarantees of the existing orders. With this step, financing conditions for Meyer Werft from a banking point of view will become comparable to those given at its main competitors in France and Italy.

In this context, VSM notes.

1. We welcome the planned, temporary state engagement and commend the constructive cooperation between the federal and state governments. In view of the company’s proven great competence and the positive market prospects, as well as a solid shipyard order book, the public sector assumes in every respect well justifiable risks. The engagement will most likely prove to be profitable for the Federal Republic of Germany, the state of Lower Saxony and the German taxpayers. This assessment is backed by sound facts:

2. We share the view expressed by many that the majority shareholding of the public sector should not be a permanent solution. In this respect we underline, that the measures have been scrutinised under the so-call private investor test, i.e. the conditions for the state are at market terms and are, therefore, compatible with community rules. We are optimistic that the Meyer Family will be able re-established a private ownership structure in a not-too-distant future.

3. Thanks to government support, the problems caused by the pandemic can be overcome and Meyer Werft will be maintained as a strategic asset for Germany and Europe. Meyer Werft is by far the most important player in commercial shipbuilding in Germany and constitutes a cornerstone of the entire maritime industry. The company’s technical facilities and capabilities are strategic assets for Germany and Europe as a whole.

4. More generally, government financing instruments are common in shipbuilding worldwide. In this respect, Germany has to make sure, a level playing field is safeguarded and competitive conditions are available to German shipbuilding companies. VSM and its members have been advocating this fundamental issue of shipbuilding financing instruments for decades. Many of the suggestions for improvement presented over the years have not yet been taken into account. In order to ensure fair competitive conditions and in the interest of a long-term successful, solid shipbuilding industry in Germany, these issues must be addressed and implemented with determination.

5. VSM is excited to work together with our European colleagues and friends and with the EU Institutions to develop and deliver a new Maritime Industry Strategy as advocated by SEA Europe and as requested by the Council of Ministers in May this year. Together we will ensure that the maritime industry in Europe will flourish
Source: VSM