{"id":33953,"date":"2020-02-21T18:10:01","date_gmt":"2020-02-21T18:10:01","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/02\/21\/europeans-dont-have-a-choice-naval-group-boss-pushes-for-shipyard-consolidation\/"},"modified":"2026-08-07T22:38:44","modified_gmt":"2026-08-07T22:38:44","slug":"europeans-dont-have-a-choice-naval-group-boss-pushes-for-shipyard-consolidation","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2020\/02\/21\/europeans-dont-have-a-choice-naval-group-boss-pushes-for-shipyard-consolidation\/","title":{"rendered":"\u2018Europeans don\u2019t have a choice\u2019: Naval Group boss pushes for shipyard consolidation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">PARIS \u2014 Europe\u2019s naval sector has no choice but to consolidate if it is to remain competitive with new entrants on the international market such as China, Russia and South Korea, according to the outgoing CEO of France\u2019s Naval Group.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At his last news conference before retiring on March 24, Herv\u00e9 Guillou said that \u201cover the past 15 years we\u2019ve seen one Chinese, one Russian, two Koreans, the Japanese, Singaporeans, Indians \u2014 and I could go on \u2014 arriving on the naval defense market. They are posing a considerable challenge and that\u2019s why Europe must consolidate.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Guillou said that between 2009 and 2018 \u2014 small ships such as offshore patrol vessels and offshore supply vessels excluded \u2014 China produced 136 military ships, of which 11 were exported; Russia produced 68, of which 14 were exported; South Korea\u2019s Hyundai Heavy Industries and Daewoo (now consolidated into one business) produced 40 ships, of which 13 were exported; and Japan\u2019s shipyards made 19, all for its domestic market. Two of the United States\u2019 shipbuilders made 78 ships, of which six were exported; Europe\u2019s 12 shipyards produced 80 ships, of which 49 were for the export market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The figures given by Naval Group are estimates supplied by the European economic group Euroyards, which uses sources such as the Stockholm International Peace Research Institute and IHS Markit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhat more need I say?\u201d Guillou remarked at the Friday briefing. \u201cWe are the only ones in the world who have to export over half our production in order to survive.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI\u2019ve always considered, personally, that exporting was an opportunity, but what I wanted to underline is that in any case we don\u2019t have a choice. When you are only two on a U.S. domestic market which provides 80 percent financing at cost-plus pricing and margins of more than 10 percent, then you can stay in your comfort zone and don\u2019t have to take unmeasured risks in Australia, Egypt, Romania or Belgium to win business that you\u2019ve fought for tooth and nail,&#8221; he added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cEuropeans don\u2019t have a choice. Not one European domestic market is sufficiently large, including the French market, to maintain the skills and levels of competitivity which we currently enjoy and are the only thing that enables the French Navy to be the world\u2019s second navy from a technological point of view, and to have the format which it does with the budget that it has.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Guillou added that Naval Group will be the core around which a future \u201c<a href=\"https:\/\/www.defensenews.com\/industry\/2017\/10\/24\/naval-airbus-in-europe-could-lead-to-industry-shake-up\/\" target=_blank>Naval Airbus<\/a>\u201d would be built \u201cbecause we have the means and the desire to do so \u2026 and other companies don\u2019t.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He also announced that Spain has joined <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2020\/02\/07\/spain-seen-joining-greece-france-italy-on-european-patrol-corvette-program\/\" target=\"_blank\">efforts by Greece and Naviris<\/a>, the joint venture between Italy\u2019s Fincantieri and Naval Group, to fulfill the European Patrol Corvette program. \u201cNaviris will be undertaking four worldwide campaigns,\u201d Guillou said without giving further details.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Guillou\u2019s replacement, Pierre Eric Pommellet, 52, previously served as an executive vice president at Thales. Although the French government has not officially announced his appointment, Guillou did mention Pommellet several times as his successor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Europe\u2019s naval sector must join forces if it is to remain competitive with new entrants on the international market, according to the outgoing CEO of France\u2019s Naval 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