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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

Turkey to Modernize Pakistan’s Subs

The Turkish defense firm Defense Technologies and Engineering (STM) won the tender to modernize Pakistan's submarines against its French competitor DCNS, reports Daily Sabah.

Turkey Launches F-513 TCG Burgazada

Turkish Navy’s third Milgem class corvette, the F-513 TCG Burgazada, created as part of the MILGEM project, was launched with a ceremony attended by Turkish President

SeaPro FourStroke Making Gains in the Commercial Market

Mercury Marine’s family of SeaPro FourStroke outboard engines is suited for high-hour applications and harsh environments, according to the manufacturer, who said

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.0675 sec (15 req/sec)