Italian shipbuilders reach record-high orders

Faced with fierce competition from shipbuilders in Korea, Japan and China, Europe has responded by focusing on technological supremacy and is third in terms of tonnage built and first in terms of value. Italy has distinguished itself in the highly specialised niche market for passenger ships, cruise ships and ferries of over 150 metres, with market shares of over 40% of the world total. Domestic shipbuilders engaged in the construction of smaller vessels are also doing well on the whole.

In 2005, 19 ships have been completed by Italian yards, totalling 398.000 cgt, for a value of 1.3 billion Euros. New orders amounted to 22 ships for 326.000 cgt. The share acquired by ANCANAP – the association grouping the medium/small yards ? out of the total tonnage, amounted to 67.500 cgt.

In the fist six months of the year the Italian shipbuilding industry totalled orders for 696,000 cgt, as a result the order book has risen to 2.2 million tons, for a value (fifth in the world) of an impressive 6.9 billion euros, 4.8 of which (70%) for foreign markets.

However, there are good reasons for the European shipbuilding industry to reflect both on the increased production capacity of Asia with the prospect of a downturn in the not so distant future, and on the competition, especially from Korea, which is increasingly moving into the high-tech sector.

Given the globalization of the shipbuilding industry, the only way Europe can compete is to keep working on the cost front and provide innovative proposals to ship owners. It is on these issues that a fruitful, wide-ranging relationship is developing between the European Commission and the shipbuilding industry for support to the sector, with particular attention to the fundamental, key activities of research, development and innovation.

Yet, for the Italian shipbuilding industry, it is also necessary that the Government and Parliament stop penalising companies. In the draft Budget Law for 2007 allocations are provided for incentives to innovation in accordance with the 2004 EU regulation, for which the industry is grateful to the Government. But nothing is provided for research and for the settlement of long outstanding issues under previous EU regulations.