German shipbuilder MV Werften could make 1,200 employees redundant as the cruiseship crisis continues to bite.
The company, owned by cruiseship group Genting Hong Kong, told workers in a video that the workforce of 3,000 has to be cut to secure crucial state financing.
Management and the general works council have "intensified" talks with metalworkers' union IG Metall, MV Werften said.
MV Werften, which owns three shipyards, revealed last year it is to receive a €193m ($234m) bridging loan to help complete a cruiseship for its parent.
The cash is coming from Germany's Economic Stabilisation Fund, set up to help domestic companies during the Covid-19 pandemic.
Restructuring talks are focused on "securing ongoing shipbuilding projects and employment scenarios for a final loan commitment" from the fund, MV Weften said.
"The prerequisite for the granting of federal credit funds is the adjustment of the workforce to the order situation."
MV Werften chief executive Peter Fetten said: "It must be the joint effort of the federal government, the state, IG Metall, works councils and us as management to continue the current projects successfully and to regulate the financing conditions for new orders at the same time.
"A positive development would also result in an increase in the number of employees."
Political courage
General works councillor Ines Scheel added: "After the very successful development of our shipyards over the past 10 years, we cannot allow a virus to stop us within 10 months. Political courage and reasonable financial terms are now required."
The state cash was due to help the company finish the 20,000-gt Crystal Endeavor for Genting, which has so far invested about €2bn in the group's Wismar, Rostock and Stralsund shipyards. The ship is due in June.
December 2022 should also see the 65,000-gt Crystal Diamond handed over.
So far, the Asian group has built 22 cruiseships in Germany.
MV Werften has 12 vessels on order for delivery into 2024, all for Genting.
