2. European Shipbuilding - LeaderSHIP 2015 EESC CCMI Hearing on the European Shipbuilding Industry Turku, 16 November 2006 Enterprise and Industry Directorate-General European Commission Patrick O’Riordan Unit ENTR/H-1: Aerospace, defence and maritime industries E-mail: patrick.o’riordan@ec.europa.eu

3. Shipbuilding in the EU Basic 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.

4. Shipbuilding in the EU Basic 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.

6. LeaderSHIP 2015 Objectives  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

7. LeaderSHIP 2015 Issues 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 Shipbuilding  Improving Research, Development and Innovation Investment  Advanced Financing and Guarantee Schemes  Promoting Safer and More Environment-Friendly Ships  A European Approach to Naval Shipbuilding Needs  Protection of European Intellectual Property Rights  Securing the Access to a Skilled Workforce  Building a Sustainable Industry Structure  30 concrete recommendations

8. LeaderSHIP 2015 Recommendations & 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 1 st half of 2007  Input to other policies where necessary  Extension to the marine equipment sector  Transposition into national plans (DE, NL, …)

9. LeaderSHIP 2015 Links with Other Community Policies LeaderSHIP2015 Industry (CESA) & Commission (co-ordinated by DG ENTR/H-1) TRADE WTO (Dispute Settlement) OECD (Int’l Shipbuilding Agreement) (Export Credits) COMPETITION Framework on State Aid to Shipbuilding (OJ 2003/C 317/06) R&D Framework Programmes (FP7: WaterBORNE TP) EMPLOYMENT Sectoral Social Dialogue (EC funded) DEFENCE Communication “European Defence – Industrial and Market Issues” (COM(2003) 113 final of 11.03.2003) TRANSPORT Maritime Safety & Security IMO Short Sea Shipping MARITIME AFFAIRS Green Paper “Towards a Future Maritime Policy for the Union”

10. Shipbuilding in the EU Current 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)

11. Conclusion We are living in changing and challenging times, but the European Commission is there to help: Ennen oli miehet rautaa Laivat oli puuta, hii-o-hoi Puuta ovat miehet nyt Ja Laivat ovat rautaa, hii-o-hoi Hii-o-hoi