Second aid package in pandemic: Federal government supports MV Werften again with millions


Second aid package in pandemic
Federal government supports MV Werften again with millions

The corona crisis is hard on the shipbuilding industry. In order to avert the bankruptcy of MV Werften with around 3,000 employees, the federal government approved a financial injection in the millions in December. That was obviously not enough. Because now follows another – and even bigger one.

The MV Werften, which is threatened by its very existence, are to be rescued from the corona crisis with further government aid worth millions. The shipbuilding companies in Wismar, Warnemünde and Stralsund will receive a total of around 300 million euros from the federal government’s economic stabilization fund, as Minister of Economic Affairs Peter Altmaier announced. “This is an important decision that gives employees in the region and the country overall confidence,” said the CDU politician. The shipyards would now have the chance to successfully emerge from the pandemic-related crisis.

The shipyard association in Mecklenburg-Western Pomerania builds passenger ships for the Asian parent company Genting Hong Kong. Due to the corona-related interruption of cruise shipping at the beginning of 2020, one of the Group’s most important sources of income collapsed – with dramatic consequences for the shipbuilders. Most of the nearly 3,000 employees had to work short-time, 650 employees are to be outsourced to a transfer company.

In order to avert the bankruptcy of MV Werften, federally guaranteed loans of 193 million euros had already been approved in December. With the renewed state aid, the shipyards would not only be able to complete ships that had already been started, but also acquire new orders, emphasized Altmaier. He assumes that with the foreseeable subsidence of the pandemic, the cruise industry will also get new perspectives. The company emphasized: “We look to the future with optimism and confidence.” Now, initially with a smaller team, the orders would be fulfilled, but ships would also continue to be developed and built. Management and shareholders tried to finance further projects.

Mecklenburg-Western Pomerania is also increasing aid

According to the Ministry of Economic Affairs, the state aid comes in the form of a silent partnership of over 60 million euros and subordinated loans of 47 million euros. Added to this are the already approved 193 million euros. The state of Mecklenburg-Western Pomerania is also increasing its loan subsidies.

The Economic Stabilization Fund (WSF) was set up by the federal government in March 2020 to counteract the economic effects of the corona pandemic. Companies are to be stabilized and jobs are to be preserved with guarantees and capital aid. The fund has a total volume of 600 billion euros. The WSF has already supported companies hard hit by Corona on several occasions, including Lufthansa and tourism operators such as Tui, FTI or Berge & Meer.

Altmaier emphasized the importance of shipbuilding for German industry and that of the company for the region. The MV Werften are the largest industrial company in Mecklenburg-Western Pomerania and employ 3,000 people in structurally weak regions. They are also important for the maritime supplier industry throughout Germany. The German shipbuilding industry has to assert itself more and more against competition from Asia, for example, but is very competitive internationally. “We know what we have in our shipbuilders,” emphasized Altmaier.

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