EU To Propose Subsidy Program To Battle South Korea

Wednesday, April 25, 2001
The European Union is proposing to subsidize its embattled shipyards in a long-standing dispute over what it views as unfair competition from South Korea. The EU will make the proposal to an EU industrial council meeting in Sweden on May 15, said EU Ambassador to Korea Frank Hesske. Sweden is the current president of the 15-member group. The EU, which has been holding talks with South Korea about the issue for the past two years, could take the case to the World Trade Organisation (WTO), but that could take many years, thus the move for a subsidy program of its own. Hesske said the South Korean government was supporting the Korean shipbuilding industry through debt forgiveness programs by state-controlled banks. He said Daewoo Heavy Industries, currently under a debt workout scheme with its state-led creditors, was a prime example of this. The shipbuilding unit of the former Daewoo Group was taken over by creditors along with 11 other core units after the group plunged into insolvency in 1999. Korean shipbuilders, Hesske said, were offering to build ships for customers at 40 percent below costs. The Korean Shipbuilders' Association maintains that the country's shipbuilders have won market share through increased cost efficiency and quality following substantial investments. Last year, Korean shipyards received nearly 38.7 percent of global orders, compared to around 25 percent for Japan and around 16 percent for the EU. The EU sees the global shipbuilding industry in a crisis with excess capacity driving prices into a downward spiral and threatening the existence of European yards. - (Reuters)
Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

BAE Systems Awarded 'USS Hopper' Repair Contract

US Department of Defense informs BAE Systems Hawaii, Honolulu, Hawaii, is being awarded a not-to-exceed $22,905,907 undefinitized contract action to a previously

MN 100: Vigor Industrial

5555 N Channel Avenue Portland, OR 97217 Tel: (503) 247-1777    Email: heather.blahnik@vigorindustrial.com Website: www.vigorindustrial.com President & CEO:

Damen Shiprepair Dunkerque Offers Strategic Advantages

Acquired less than two years ago, Damen Shiprepair Dunkerque is a relatively new addition to the group’s worldwide network of ship repair and conversion yards. Originally called Arno Dunkerque,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1245 sec (8 req/sec)