Pierfrancesco Vago, Chairman of the Supervisory Board of MSC Cruises, visited the Meyer Werft shipyard in Papenburg. The main topic was the planning of the “New Frontier” series.
Pierfrancesco Vago, Chairman of the Supervisory Board of MSC Cruises, visited the Meyer Werft shipyard in Papenburg on Tuesday. This is where the Swiss cruise line’s latest class of ship is to be built over the next few years. The binding letter of intent is to be converted into an order by June, according to Vago.
From 2030, four cruise ships of the so-called “New Frontier” series will then be delivered in Papenburg each year, with the option of two more. According to Vago, the “New Frontier” ships, which are currently being developed with the Meyer Werft team, will be “ships for multi-generational cruises that also offer the luxury of the ‘MSC Yacht Club’.”
Financing is crucial for the construction. The construction period financing with a 20 percent down payment by the customer and 80 percent payment on delivery, which was common in the years before the COVID pandemic, is a thing of the past. Vago explained that special purpose vehicle financing will be sought for “New Frontier”. A project company will be set up for this purpose, which will mainly be fed by the credit from the export credit final financing later covered by Hermes.
“Still in operation until 2050 and beyond”
Together with Meyer Werft, the company will develop technologies for the ships “that no other industry can offer”. That is why the company is investing heavily in research and development together with the shipyard’s engineers. “What we design and build now will still be in operation in 2050 and beyond,” says Vago. The planning of the “New Frontier” series is therefore a decisive moment on the way to the goal of net zero emissions.
In terms of size, the new MSC generation will be slightly below the Meraviglia Plus class around “MSC Grandiosa”, “MSC Virtuosa” and ÍMSC Euribia”. “We will be building around 180,000 GT ships, which will make full use of the large 45-meter-wide docks at Meyer Werft,” says Pierfrancesco Vago.
According to the MSC manager, he wanted to get a first-hand impression of the shipyard and its employees. “After we announced our new partnership with Meyer Werft in Berlin in December, it was important for us to come here and present our vision for this new prototype and our long-term plan,” said Vago at a press conference following a meeting with around 100 shipyard employees and representatives from local, state and federal politics.
It was reported by those attending the internal meeting that shipyard workers had become downright emotional. This was possible, as the news of the new cooperation between Meyer and MSC at the end of last year came after months of uncertainty. Meyer Werft had fallen into economic difficulties as a result of the coronavirus pandemic and the Russian war of aggression against Ukraine. The federal government and the state of Lower Saxony each acquired a 40 percent stake in the former family business. The Meyer shipbuilding family, who founded the shipyard in Papenburg in 1795 and started building cruise ships with Bernard Meyer in the mid-1980s, now only holds 20 percent of the company shares.
Optimism prevails after the visit
“When we look back at where we were just over a year ago, we cannot overestimate the value of today’s visit and the discussions we had with MSC Cruises and Pierfrancesco Vago,” says shipyard CEO Bernd Eikens. The Meyer Werft shipyard is in dire economic straits and there has been a lack of security and fears for the future among employees. After the talks with Vago, an optimistic picture emerged “and the way in which Mr. Vago spoke to the employees is something I have never experienced before,” said the shipyard boss.
In his speech, Pierfrancesco Vago emphasized that Germany can look back on a long and proud history of shipbuilding based on precision, technical excellence and craftsmanship. “Meyer Werft is one of the most respected shipyards in the world and we will be committed here for the long term. We are not here for a single project.” He said he was pleased that the cruise industry was now receiving the recognition from the EU that it deserved. “This is an industry that not only creates jobs for generations, but also guarantees that new technologies that we develop here together with the shipyard will remain available in Europe for decades to come,” said Vago.
Around 7,500 jobs in the north-west and a total of 22,000 jobs along the value chain depend on Meyer Werft.
