Thyssenkrupp to buy MV Werften shipyard

BERLIN — German submarine and ship builder, Thyssenkrupp Marine Systems, said on Friday it has agreed to buy the Asian-owned MV Werften shipyard on Germany's Baltic coast which filed for bankruptcy at the start of the year.

The German company, TKMS, said in a statement that the two sides had agreed confidentiality on the purchase price. 

MV Werften ran into dire straits after the COVID-19 pandemic hit demand for cruise ships, putting thousands of jobs at risk and dealing a blow to the local economy.

TKMS said the takeover of MV Werften would give "one of the most tradition-rich shipyards in Germany a long-term perspective" for its operations. 

It said it expected to produce submarines at the facility from 2024 if the German government ordered further vessels "and the resulting investment in the upgrading of the shipyard". 

The German government has announced plans for a massive increase in military spending in the wake of the war in Ukraine, which could lead to a boost in orders at MV Werften.

Reinhard Meyer, economy minister of Mecklenburg-Western Pomerania state, home of the shipyard, welcomed the takeover, saying it offered the chance for "as many jobs as possible to be maintained in the maritime industry".

Trade union IG Metall said it had agreed with TKMS on the basic outlines of a future employment plan at the shipyard. 

An initial 800 staff are to be hired, with personnel levels reaching up to 1,500 depending on future business.

MV Werften had declared insolvency in January after it said its talks with the federal and state government on a rescue package ran aground. 

MV Werften's fate was decided thousands of kilometres away in Asia, in the offices of Genting HK, the owner of the shipyard. 

Specialised in tourism and casinos, the company collapsed as a result of the disruption to travel caused by the pandemic and the decision made by its Malaysian parent company Genting to abandon it.

"We are the classic victims of coronavirus," said Carsten Haake, MV Werften's chief executive, at the time.

It was not immediately clear what would become of "Global Dream", planned as one of the world's largest cruise ships, the construction of which was halted following the bankruptcy filing.

It is 75 per cent complete, MV Werften said, but would need another 600 million euros ($636 million) in investment to be completed.