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Merkel’s District Awaits P+S-Werften Shipyard Job Cuts, FTD Says

German Chancellor Angela Merkel’s electoral district by the Baltic Sea is bracing for shipyard job losses after the federal and regional governments refused to award further state funding to shipbuilder P+S-Werften, the Financial Times Deutschland reported.

Almost 2,000 jobs are at risk at the company’s yards in Stralsund and Wolgast after Merkel’s Christian Democratic-led government and the Social Democratic-led state administration in Mecklenburg-Western Pomerania declined to provide more subsidies, the FTD said. The company has been in difficulty since 2009 and hasn’t delivered a ship since April, the newspaper said.

“It’s a great crew, which naturally makes today all the harder,” Merkel was cited as saying yesterday. “The state’s role has been exhausted.”

More than half a dozen German shipyards have gone bust since the financial crisis amid a reduction in orders and increased competition from China, Japan and Korea, the FTD said. Sixty-seven yards are still registered in Germany, with total revenue of 4.6 billion euros ($5.7 billion) in 2011, down from 7.5 billion euros in 2010. Ruediger Fuchs, chief executive officer of P+S-Werften, is seeking a private investor for the yards, it said.

To contact the reporter on this story: Alan Crawford in Berlin at acrawford6@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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