A multi-ship order from MSC Cruises valued at €10 billion, or $11.7 billion, will keep Meyer Werft’s Papenburg yard operating at full stretch for over a decade and secure capacity until 2035.
Germany’s Economy Minister Katherina Reiche said the contract covers newbuild projects running until 2033, with two optional ships that would extend the programme through 2035.
Reiche said she sees MSC Cruises as an important long-term partner for Meyer Werft.
In a separate statement, the Economy Ministry said the deal is expected to cover the construction of four to six cruise ships. The ministry added that the series will use the full production capacity of Meyer Werft’s yard at Papenburg in northern Germany, near the Dutch border, until 2035.
The new order comes after a state-backed rescue of Meyer Werft last year, when the company was close to bankruptcy. To stabilise Meyer Werft, Germany’s federal government and the Lower Saxony state government each took a 40% stake in the shipbuilder, together injecting €400 million and providing €2.6 billion in credit support.
The yard had been hit hard by the COVID-19 pandemic and the economic consequences of the war in Ukraine, which severely disrupted cruise ship orders and financing.
According to the Economy Ministry, a restructuring programme got underway in early 2024 and is scheduled to run until the end of 2028.
Reiche said the government intends to keep supporting Meyer Werft until the yard reaches financial stability and can operate independently. She also said the goal is to re-privatise the yard once it is viewed as strong enough to re-enter the market.
The contract with MSC Cruises is expected to secure long-term employment at Meyer Werft and to strengthen Germany’s role in the international cruise shipbuilding market.
