Bankruptcy and Restructuring in the European Shipbuilding Industry

It was reported that the European shipbuilding industry faced several notable bankruptcies and financial difficulties in 2024.

Fosen Yard AS, a major shipbuilder based in Norway, reportedly declared bankruptcy in January. The shipyard’s closure is attributed to difficult market conditions impacting its operations.

It was also reported that the Dutch shipbuilding group Damen has filed a bankruptcy request concerning its joint venture, Damen Shipyards Mangalia, in Romania. This action follows Damen’s acquisition of a majority stake in the Romanian shipyard in 2018. The bankruptcy request is linked to €160 million in overdue loans provided by Damen to the shipyard since the acquisition.

Additionally, it was reported that Meyer Werft, a prominent shipyard group in Germany, is facing severe financial difficulties and is in negotiations with the government for a potential bailout package. Meyer Werft is reportedly seeking €2.3 billion in loans and an extra €400 million in capital to address rising costs and challenges in the cruise ship market post-COVID-19. The company, which employs 3,300 people directly and supports additional jobs in its supply chain, is said to be in a critical financial situation.