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.