The Papenburger Meyer Werft, a cornerstone of Germany’s shipbuilding industry, faces a protracted and challenging restructuring process despite recent contract wins, according to statements released to regional newspapers. While lauded for securing a monumental €10 billion order from MSC Cruises – a deal that guarantees construction of four cruise ships by 2033 with an option for two more until 2035 – the shipyard’s recovery remains significantly incomplete, with restructuring efforts estimated to be only 30-40% finalized.
Ralf Schmitz, the designated restructuring officer and Managing Director Bernd Eikens revealed deep-seated operational inefficiencies hindering the shipyard’s turnaround. The most startling revelations involve the persistent reliance on outdated, paper-based processes and antiquated IT systems within the commercial departments. Schmitz explicitly cited “Zettelwirtschaft” – a German term for bureaucratic dependence on physical paperwork – and the absence of timely, accurate financial reporting, even hindering the completion of monthly account closures. The management highlighted a lack of automation in crucial areas like component completion reporting and warehouse item retrieval.
The absence of a unified software system has further exacerbated inconsistencies, with various departments reportedly operating with divergent data sets. The implementation of a crucial, company-wide SAP system, deemed essential for integrated data management, is not slated for completion until mid-2027 – a timeframe drawing criticism for its delay.
Despite the serious structural impediments, officials at the shipyard are publicly committed to maintaining employment levels, stating that the current workforce of approximately 3,200 employees will be preserved, with potential capacity expansions in some areas. This pledge underscores a political imperative to safeguard jobs within the region, given the shipyard’s significant economic importance.
However, Schmitz’s comments revealed a more complex reality involving inherited liabilities. He acknowledged the existence of highly deficit-laden contracts discovered during the restructuring process, including prior commitments related to the fabrication of components for the Spanish shipyard Dragados and the construction of specialized vessels like a naval logistics support ship. These legacy projects are contributing significantly to ongoing losses and underscore the financial fragility of the Meyer Werft, even with the substantial MSC Cruises order secured. The long road to stabilization, now projected to extend until 2028, raises questions about the true scope of the turnaround effort and the potential for future financial vulnerabilities.