{"id":104365,"date":"2026-02-27T07:31:35","date_gmt":"2026-02-27T10:31:35","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/896090395"},"modified":"2026-02-27T07:31:35","modified_gmt":"2026-02-27T10:31:35","slug":"german-shipbuilder-urges-scotland-to-back-niches","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/27\/german-shipbuilder-urges-scotland-to-back-niches\/","title":{"rendered":"German shipbuilder urges Scotland to back niches"},"content":{"rendered":"
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One of Europe\u2019s most successful shipbuilding groups has told a Holyrood cross-party session that Scotland can rebuild maritime strength, but only by focusing on high-value specialisation, sustained investment and credible state support for innovation.<\/h4>\n

Addressing a joint meeting of the Scottish Parliament\u2019s Cross-Party Group on Germany and Cross-Party Group on Maritime and Shipbuilding, a senior representative of Meyer Werft set out how a 230-year-old German yard navigated industrial decline, global price pressure and the shock of the pandemic to remain globally competitive.<\/p>\n

Meyer Werft, founded in 1795 in Papenburg, now accounts for the overwhelming majority of Germany\u2019s gross tonnage output. Yet its speaker was candid about the realities facing European shipbuilders. \u201cWe don\u2019t compete with China and South Korea on container vessels anymore,\u201d<\/em> he said. In some cases, he added, bids from Asian yards appear to come in below European material costs, reflecting financial and structural advantages that make direct competition in commodity shipbuilding unrealistic.<\/p>\n

The lesson Germany drew from that experience was not retreat, but concentration. High-complexity, high-specification vessels, particularly in the cruise sector, became the core focus. Today, around 95 per cent of Meyer Werft\u2019s portfolio is cruise ship construction, alongside selected research and specialist vessels. The executive described this positioning as deliberate and necessary. \u201cIt is super important to target specialised niche,\u201d<\/em> he told the session, arguing that European shipbuilders must offer something distinct if they are to survive in a market dominated by scale elsewhere.<\/p>\n

Germany\u2019s wider industry has contracted significantly over the past half-century. Direct employment has fallen from roughly 70,000 to around 15,000. Many yards have closed. Even Meyer Werft faced severe strain during Covid-19, when the cruise market effectively halted overnight, compounded by inflationary pressures following Russia\u2019s invasion of Ukraine. In response, the German government stepped in as a shareholder, a move the speaker characterised less as political control and more as financial stabilisation.<\/p>\n

Modern cruise ships now cost well in excess of 1 billion to build, with payment structures heavily weighted towards final delivery. \u201cYou get 20 per cent at the beginning when you sign the contract, 80 per cent when you deliver,\u201d<\/em> he explained, meaning yards must finance construction for years before final payment. With the state in the background, banks view the risk differently. \u201cWith the government in the back, the financing is not anymore you are a private company with limited guarantee behind it.\u201d<\/em><\/p>\n

He was clear that Germany does not simply subsidise shipbuilding in the traditional sense. Instead, support flows primarily through research and innovation funding. Early-stage maritime R&D can receive substantial public backing, while installation of mature innovations on vessels can attract partial risk-sharing support. The approach is designed to keep yards technologically competitive while remaining compliant with European rules. \u201cYou share the risk of your research,\u201d<\/em> he said, describing funding levels of between 50 and 70 per cent for research projects, depending on technology readiness.<\/p>\n

Investment in facilities has also been decisive, it seems. The yard\u2019s automated laser panel line and highly integrated production halls were cited as transformative. \u201cWithout the laser centre, we wouldn\u2019t be there anymore,\u201d<\/em> he recalled being told when he joined the company. Productivity and modernisation, he suggested, were not optional extras but preconditions for survival. Beyond economics, the executive argued that civilian shipbuilding underpins strategic resilience. Cruise vessels may not be warships, yet the supply chain that sustains them is deeply European. Meyer Werft alone works with around 1,500 registered suppliers, the vast majority based in Europe. If the cruise market were to collapse, the shock would not be confined to tourism.<\/p>\n

\u201cIf this goes down, it would be super critical for the whole industry,\u201d<\/em> he said, adding that the impact would inevitably be felt in naval shipbuilding and defence supply chains. The argument was that a healthy civilian maritime sector helps preserve skills, facilities and industrial depth that can support national capability more broadly. When asked directly about efforts to revive merchant shipbuilding in countries that have largely exited the sector, he offered measured caution saying that tebuilding capacity after decades of decline is possible, he acknowledged, but it requires clarity about future positioning.<\/p>\n

\u201cIf it once lost, you should not look back what you lost. You should look where you want to be,\u201d<\/em> he said, urging policymakers to define the segments and technologies they wish to lead in rather than attempting to recreate the past.<\/p>\n

For Scotland, where naval shipbuilding remains active on the Clyde and at Rosyth but large-scale merchant construction has long faded, the message was pragmatic rather than pessimistic. Competitive advantage, he suggested, lies in advanced manufacturing, high-spec vessels, green propulsion technologies and a strong supply chain, all supported by coherent long-term policy. He pointed to green technology as a defining frontier, from LNG to fuel cells and alternative fuels, and set out Meyer Werft\u2019s ambition to deliver a zero-emission cruise vessel by 2035. Regulatory clarity and sustained public commitment, he argued, are essential to give young engineers and skilled workers confidence that maritime industry has a future.<\/p>\n

Image Copyright Raimond Spekking \/ CC BY-SA 4.0<\/a> (via Wikimedia Commons).<\/em><\/p>\n

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