Scars are healing in Germany

About 2,900 shipbuilders, or two thirds of those who once worked for Bremer Vulkan now have new jobs. Many have not gone back into the few remaining local yards, but it indicates that the Vulkan scars are healing.

In the former GDR, the acquisition this year of former Vulkan yard MTW by Norway`s Aker Group, and Volkswerft by A P Moller has also repaired wounds. The Scandinavians have brought big plans for expansion, which means fewer job losses than expected when costly restructuring is undertaken this year and next.

Former Vulkan subsidiaries have made a lot of progress since the parent company was closed. Many other yards are also reporting increases in productivity of up to 40 per cent as a result of production streamlining and restructuring.

That, along with a still-intact reputation for quality and deadline reliability, has gone a long way to help many meet, and in some cases even match, foreign competition. An increase in government money for 7 per cent subsidies – from DM80 million ($48.9 million) to DM110 million ($67.2 million) has also been seen as important. “It is a clear political signal,” Meyer Werft managing partner Bernard Meyer says, “that the government, despite being short of cash, wants to help us.”

Schichau Seebeckwerft and Neptun Industrie are still struggling but others, like Lloyd Werft, Flender Werft and the former GDR yards, point to good orders, and have been positive about the future. The east Germans have done best of all. They expect a record 20 newbuilding orders worth DM2 billion ($1.2 billion) this year.