Meyer Werft, a luxury shipbuilder, announced that German Chancellor Olaf Scholz would visit the company on Thursday. The announcement raised hopes for the luxury shipbuilder to receive support from the German government in order to close a hole of 2.7 billion euros ($3.00 billion).

Thomas Gelder, IG Metall union president, said: "We expect him to bring us good news."

He added, "It is a positive sign for both the workforce and region. It's also a show of appreciation to have Mr Scholz come."

Meyer Werft announced in a Wednesday statement that the state premier of Lower Saxony and the minister for the economy of Lower Saxony will attend a meeting of the works council. Papenburg is the home of Meyer Werft, a shipbuilder with a history of over 200 years.

The Handelsblatt reported that a press conference would be held after the meeting.

According to the restructuring chief at Meyer Werft - one of the largest cruise ship builders in the world - it needs 2.3 billion euro in working capital, and 400 million euro in equity, to cover losses in past years and costs associated with restructuring.

On July 3, the German Economy Ministry announced that it was considering possible government support for Meyer Werft. The company also plans to cut hundreds of jobs as part of its plan of survival. Reporting by Klaus Lauer, Rachel More and Kirsti Knolle in Berlin.

(source: Reuters)