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 October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

Seaspan Shipyard's Prompt Response to Canadian Coast Guard

Seaspan Shipyard’s long-standing relationship with the Canadian Coast Guard was proudly showcased in recent days, with simultaneous repair and maintenance work

Energy Storage System Ordered for LNG Battery Hybrid Ferry

Norwegian hybrid to be the first LNG battery ferry to operate on commercial routes Corvus Energy, Siemens AS and Fjord1 have announced the award of the contract for the Fannefjord LNG hybrid ferry.

N-KOM Recognized for Shipyard Safety, Security

Nakilat-Keppel Offshore & Marine (N-KOM) received the Safety & Security Award at the inaugural edition of The Maritime Standard (TMS) Middle East & Indian Subcontinent Awards,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Port Authority Ship Electronics Ship Simulators Sonar 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: 0.2464 sec (4 req/sec)