European Shipbuilding - LeaderSHIP 2015

EESCCCMI Hearing on the European Shipbuilding Industry

Turku, 16 November 2006

Enterprise and Industry Directorate-General

European Commission

Patrick O’RiordanUnit ENTR/H-1: Aerospace, defence and maritime industriesE-mail: patrick.o’riordan@ec.europa.eu

Shipbuilding in the EUBasic definitions

The EU shipbuilding industry consists of the yards, the marine equipment manufacturers and the related services (classification, insurance, banks, R&D institutes etc.).

The fields of activity are the construction and repair of merchant ships, naval vessels, yachts above 24 m length, fishing vessels and other floating structures.

The Commission deals with the sector in many ways. DG Enterprise and Industry is concerned with the global competitiveness of the sector.

Industrial competitiveness is mainly addressed through the LeaderSHIP 2015 initiative. There is a close link with the EU’s general approach to industrial policies.

Shipbuilding in the EUBasic facts

CESA (Community of European Shipyards’ Associations) and EMEC (European Marine Equipment Council) represent the industry on European level.

CESA represents more than 300 yards and companies in 14 European countries (of which 3 non-EU), with a total employment of 115.000 and a turnover of ca. 13 billion Euro (2004, Korea: ca. 10 bn, Japan: ca. 9.5 bn, China: ca. 6 bn). World market share (2004/05): ca. 20% in new orders (cgt).

EMEC represents 1250 companies in 11 European countries (of which 1 non-EU), with a total employment of ca. 260.000 and a turnover of ca. 26 billion Euro. World market share is ca. 35%.

European yards and equipment manufacturers are global technology leaders in almost all fields.

LeaderSHIP 2015Objectives

Maintain and further develop a strong position in selected higher-value market segments

Ensure world leadership in product and process innovation

Develop a strong customer orientation

Further improve the networked industry structure

Optimise production processes and increasingly focus on knowledge-based products

LeaderSHIP 2015Issues

Issues addressed by the LeaderSHIP 2015 Advisory Group and taken up in the Communication “LeaderSHIP 2015 - Defining the future of the European Shipbuilding and Repair Industry - Competitiveness through Excellence” (COM(2003) 717 final of 21.11.2003)

A Level Playing Field in World ShipbuildingImproving Research, Development and Innovation InvestmentAdvanced Financing and Guarantee SchemesPromoting Safer and More Environment-Friendly ShipsA European Approach to Naval Shipbuilding NeedsProtection of European Intellectual Property RightsSecuring the Access to a Skilled WorkforceBuilding a Sustainable Industry Structure

30 concrete recommendations

LeaderSHIP 2015Recommendations & Follow-up

Council Conclusions of 26-27 November 2003 (CS/2003/15141) endorsing general approach and selected recommendations

Full set of recommendations:http://ec.europa.eu/enterprise/maritime/maritime_industrial/leadership_2015.htm

Implementation of recommendations on-going(industry with the European Commission)

Progress report to the Council in 1st half of 2007

Input to other policies where necessary

Extension to the marine equipment sector

Transposition into national plans (DE, NL, …)

LeaderSHIP 2015Links with Other Community Policies

LeaderSHIP2015Industry

(CESA)

&Commission

(co-ordinated by DG ENTR/H-1)

TRADEWTO

(Dispute Settlement)OECD

(Int’l Shipbuilding Agreement)(Export Credits)

COMPETITIONFramework on State Aid

to Shipbuilding(OJ 2003/C 317/06)

R&DFramework Programmes(FP7: WaterBORNE TP)

EMPLOYMENTSectoral Social Dialogue

(EC funded)

DEFENCECommunication

“European Defence – Industrial and Market Issues”

(COM(2003) 113 final of 11.03.2003)

TRANSPORTMaritime Safety & Security

IMOShort Sea Shipping

MARITIME AFFAIRSGreen Paper

“Towards a Future Maritime Policy for the Union”

Shipbuilding in the EUCurrent issues (short to mid term)

LeaderSHIP 2015:

• OECD Working Party, international agreement(s)

• Market monitoring, esp. for China

• EU shipyard financing

• R&D, preparation of FP7, Waterborne TP

• Transport Policy review, esp. short sea shipping

• IPR study

• Industry structure, esp. Poland and Croatia

State aid framework (prolongation and updating; regional investment and innovation aid; capacity “philosophy”)

Maritime Policy Green Paper process

Ship recycling (IMO and EU)

Conclusion

We are living in changing and challenging times, but the European Commission is there to help:

Ennen oli miehet rautaaLaivat oli puuta, hii-o-hoi

Puuta ovat miehet nytJa Laivat ovat rautaa, hii-o-hoi

Hii-o-hoi