Orders Were Taken Away By The Chinese Shipyard! Germany Attacks The Asian Shipyard

- May 16, 2018-

The German German Shipbuilding and Marine Technology Association (VSM) stated in its annual report that the orders received by German shipyards in 2017 have dropped significantly. China is attracting more and more orders in the core market, taking away the share of German and European shipyards, and its price is lower than the cost of raw materials; in South Korea, state-owned banks will usually become shipyard owners after the reorganization of the shipyards, these banks are now It is also financing deficit projects, and despite oversupply, the South Korean government has announced that it will build 200 large commercial vessels.  weld overlay flange

According to the VSM, European shipyards received 35% of global new ship orders in 2017, but the total value was 50% less than the previous year. The value of new orders received in Germany last year dropped from 7.8 billion euros in the previous year to 2.3 billion euros, a record low. The number of ships delivered has also dropped dramatically. Last year only 22 ships such as cruise ships were delivered, compared with more than 100 ships 10 years ago.

The VSM believes that an important reason for the decline in shipyard orders in Germany and Europe is that Chinese competitors have obtained more orders. Compared with Europe, Chinese shipyards have advantages in terms of price and speed. Even many European customers choose Chinese shipyards. In addition to traditional strengths such as container ships, the Chinese have also made great strides in large-scale luxury yachts and holiday cruises that Europeans are good at. weld overlay elbows

VSM CEO Reinhard Luken had previously stated that it is a national goal for China's shipping companies to enter the cruise market. This national target may greatly distort market competition.

It is understood that at present, Germany mainly builds high-end hulls represented by luxury cruise ships and competes with China, Japan and South Korea. However, with the transformation and upgrading of the shipbuilding industry in China, Japan and Korea, the high-end shipbuilding market in Germany will be subject to new challenges. piping spool

Germany’s attack came from Japan’s recent suggestion that Japan is considering appealing South Korea’s appeal to the World Trade Organization (WTO) again on the issue of state subsidies. At the meeting of the shipbuilding sector held at the Organisation for Economic Co-operation and Development (OECD) last year, Japan and the European Union opposed the Korean government’s assistance to Daewoo shipbuilding. Japan and the European Union believe that the South Korean government's assistance program for Daewoo Shipbuilding is unfair and violates the rules of the WTO.

The VSM concluded that “effective global trade rules will help all market players because overcapacity and exaggerated price competition are reflected in the entire value chain.”