German shipyard reports successful completion of latest government refinancing

German shipbuilder Meyer Werft has confirmed that it is receiving extensive financial support from Germany's federal government and the state of Lower Saxony.

The announcement came shortly after the lower house of Germany's parliament and the Lower Saxony state parliament have given official approval for the extension of financial support to Meyer Werft.

The move had been considered earlier by the country's federal government in light of the financial difficulty experienced by the company. The proposed lifeline has also secured backing from Chancellor Olaf Scholz, who confirmed the government's promise of support during a recent visit to the yard's facilities in Papenburg.

The federal government and the government of Lower Saxony have invested €400 million (US$440 million) in exchange for an 80 per cent interest in the company. A loan guarantee of €1 billion (US$1.1 billion) is also being proposed, and its terms include a provision that it will be covered by the federal government in case of a default on the part of the yard.

Meyer Werft said that the successful refinancing will make it possible to secure jobs within the company and in its supplier network.

Meyer Werft added that, despite the planned takeover of shares by the federal government and the state of Lower Saxony, the acquisition is not intended to be permanent.

The company clarified that parties involved are pursuing the goal of transferring the business back into private ownership over the long term.