Meyer-Werft Insolvency Managers Battle 'Paperwork Chaos' - Meyer-Werft Insolvency Managers Battle 'Paperwork Chaos'
Meyer Werft, the struggling German shipbuilder, has narrowly avoided insolvency after a major financial rescue. The federal government and the state of Lower Saxony have each taken a 40% stake in the company, injecting €400 million and guaranteeing a credit line of up to €2.6 billion. The move comes as the firm secures a lifeline order worth up to €10 billion from MSC Cruises.
The company’s financial troubles stemmed from years of mismanagement and costly mistakes. Past projects, such as manually building offshore platforms in tents and naval tankers in Rostock for the NVL Group, proved highly unprofitable. Workers frequently remained on ships during sea trials to complete last-minute tasks, driving up expenses. Even basic processes, like recording supplier complaints during ship handovers, relied on outdated methods—yellow slips of paper instead of digital systems.
Restructuring efforts have exposed deep inefficiencies, including a culture of 'paperwork chaos'. The overhaul is now between 30 and 40 percent complete, with plans to digitise operations and stabilise SAP software across all divisions by mid-2027.
Despite its struggles, Meyer Werft has secured a major contract from MSC Cruises. The deal covers four new cruise ships by 2033, with an option for two more by 2035. This order, potentially worth €10 billion, offers a crucial path to recovery.
The rescue package and new MSC Cruises contract provide Meyer Werft with a chance to stabilise. The company must now address long-standing inefficiencies and modernise its operations. Success will depend on completing the restructuring and delivering the new ships on time and within budget.
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