Hamburg (dpa) – Before the start of the international shipbuilding trade fair SMM in Hamburg, the German industry association is warning of a possible tipping point. Europe has been losing market share in shipbuilding for a long time and has already lost a significant part of the industry, according to a statement by the Association for Shipbuilding and Marine Technology (VSM). The industry must remain efficient so that expertise remains in Europe.
A solution for sustainable development must be found at European level. The VSM takes up a proposal from the EU Commission in 1997 that was not implemented at the time. According to this plan, tax breaks and state guarantees would be linked to ships being built in Europe.
According to the organizer, the trade fair for shipbuilding, machinery and marine technology is the world's leading trade fair for the maritime industry. From Tuesday to Friday, the organizers expect more than 2,000 exhibitors and 40,000 trade visitors in Hamburg. An overview of the situation of the domestic shipyards:
How is the market developing?
Although the VSM warns of a possible tipping point, the association states that the capacity utilization of most German companies is currently good. Last year, the value of incoming orders in maritime shipbuilding was around 2.6 billion euros, according to the association's annual report. This corresponds to an increase of almost 172 percent compared to the previous year. Maritime shipbuilding includes cruise ships, yachts and merchant ships. Inland shipbuilding also recorded a significant increase.
In addition, according to consistent information, the previously low world market prices for newbuildings have risen again. The VSM expects the trend to continue because shipowners have to modernize their fleets in order to meet climate protection requirements. The low prices were a problem because high energy costs often could not be passed on to customers.
What is the mood in the companies?
The IG Metall Küste surveys works councils at shipyards and suppliers every year. The current result is better than last year: more than a third of the companies expect the order situation to improve in the next two years. Only one in ten companies expects a disruption.
What role does German shipbuilding play worldwide?
There is almost no production left for commercial vessels such as container ships. According to the UN Conference on Trade and Development, Germany accounted for 0.45 percent of production last year. Other European countries are suffering at a similar level.
Most of the ships are built in Asia. According to figures from the European shipbuilding association Sea Europe, more than 80 percent of all orders by value last year came from China and South Korea. Japan is also an important location. Prices are the main deciding factor in orders.
In 2006, the domestic industry still received many orders for cargo ships in the civil sector. The shipyards now specialize almost exclusively in high-tech segments. When it comes to building cruise ships, Germany was recently in second place worldwide – behind Italy. Between 2011 and 2021, Germany's share of cruise ship production was 29.1 percent, as an OECD analysis shows. Yachts are also successfully built in Germany.
How important are shipyards for the domestic economy?
According to the VSM, around 60 shipyards employed around 16,700 people last year and achieved a turnover of 6.7 billion euros. However, the private sector is far more important than the figures suggest. A study commissioned by the Federal Ministry of Economics shows that 100 employees in shipbuilding secure 380 jobs in the economy as a whole. This is because the shipyards work with suppliers, some of whom commission other companies.
The shipbuilding and offshore supply industry employs around 63,000 people and achieved a turnover of around 11.3 billion euros last year, according to the German Mechanical and Plant Engineering Association. The most important location is Baden-Württemberg, where companies generate 27 percent of turnover. This is followed by Bavaria (20 percent) and North Rhine-Westphalia (11 percent). The figures show that shipbuilding is not only important in the coastal federal states.
Who are the largest employers?
According to a survey by IG Metall, the three shipyard groups employ the most people. Meyer Neptun, which specializes in cruise ships, has around 4,170 employees. The group also includes the struggling Meyer Werft. Second place goes to Thyssenkrupp Marine Systems from Kiel with around 4,030 employees. The Thyssenkrupp subsidiary is active in naval shipbuilding and claims to be the world market leader in the construction of conventional submarines. The Lürssen group from Bremen, known for mega yachts and naval ships, has around 3,290 employees.
What trends are there?
A large market is converter platforms for offshore wind farms. Such a platform, which is intended to improve the transmission of electricity to land, could cost the Federal Ministry of Economics around 2.5 billion euros. At least 33 new platforms are to be built on the German market by 2045. Several shipyards are preparing to build the systems. Meyer Werft is already working on one.
It is also known that the first companies are involved in ship recycling. A study has concluded that this could be driven by a higher demand for steel scrap. However, legal hurdles are still holding the company back. Military contracts are more lucrative than old ships anyway, and these are likely to increase after the Russian attack on Ukraine.
© dpa-infocom, dpa:240901-930-219244/1
