Naval Industry 2013 Content Portugal Portuguese Naval Industry aicep Portugal Global 2 PORTUGAL IS A BUSINESS OPPORTUNITY Why choose Portugal? Strategic location Portugal is the European nearest country to the U.S. 3-hour distance between Brazil and Russia. Same time as UK and Ireland. Attractive Consumer Market Portugal 10,6 Iberian Market 51 Great and privilege economic relations European Market 494 between Portugal and Brazil, Angola and Mozambique. Portuguese Speaking countries 220 Daily flights to major European cities. Million Inhabitants Why choose Portugal? Qualified Workforce Flexible labour lawHigh-standard educationWide availabilityPartnerships with world-class US institutions Portugal has a highly skilled and educated 71,7% workforce. Portugal ranks on Top within the EU countries in number of PhDs per 1,000 inhabitants. 43,6 11,3 40% of students in tertiary education are enrolled in engineering, sciences and health. The increase rate in the last 3 years is about 30%. Working Days Lost 42% (per 1.000 employees – EIRO, 2005- Portuguese are known for commitment to 2009) At least 1 23% language At least 2 work which places us below the EU average languages regarding working days lost per year. 6% At least 3 Language skills: English, French and Spanish languages are the most spoken languages. English is universally taught from 1st grade. Why choose Portugal? Competitive Costs Portugal is still cost competitive according to international recognized sources. There was a decrease of -1,2% in hourly labour costs in 2012 Q1 (Euro 27 rose by +2,0%). In terms of real estate – industrial space - and within 53 countries/cities worldwide, Portugal/Lisbon is the 8th less expensive location. Portugal also has one of the lowest monthly minimum wage in Europe (485€). +1,5 12,4 4,0 1,5 100 11,4 3,4 87 -1,2 Electricity Natural Gas Labour Cost Index Cost of Living (Prices for industries in (Prices for industries, in €/GJ – (Year-on-year rate of change – (HFC 2011 - Eurostat) €/100kWh – Eurostat 2012 Eurostat 2012 S1) Eurostat 2012 Q1) S1) Why choose Portugal? Technological Infrastructures 0,72 0,38 FULLY DIGITALIZED Telecom Prices Euro/10 min call Eurostat 2010 Telecommunications have been a major priority in Portugal. The country has now 95% coverage The percentage of fiber connections in total of broadband infrastructures. broadband is already 6% for Portugal, The net increase in the ahead of countries such as Netherlands, broadband penetration growth for Finland, France, Spain, Italy, Poland, Portugal is above the OECD Austria Germany or Belgium. average (Dec 2010). The Internet is also well developed. Portugal is a United Nations case study in terms of e-Government and its availability of public services on-line. Why choose Portugal? Office Space available Portugal offers a dynamic real estate market. High quality space, well designed and energy efficiency oriented has boomed and rent prices are competitive comparing the other European countries. Portugal is ahead of Office space Industrial space countries such as France and Spain in terms o 915 123,5 cost. The figures are 439 79,2 290 52,2 shown for Lisbon. If we considered Porto area, prices can lower 25%. Occupancy cost, in €/sqm/year, C&W2013 Occupancy cost, in €/sqm/year, C&W2011 Why choose Portugal? Business friendly environment MULTI-CULTURAL Portugal is very open to foreign cultures: the availability of international schools, EASE OF DOING BUSINESS the safety record and quality of life attract expatriates. • Major public services are on-line; As a result Portugal is ranked #2 in the Migrant Integration Policy Index 2011. • Portugal is considered by the United Nations, a case study in e- Government; “Portugal is unique in attracting young • Average time to set up a firm is less graduates and executives.” Carlos than 1-hour Brazão, Cisco Portugal Why choose Portugal? They chose us MANUFACTURING SERVICES “ One of our main strategic lines was always to shorten Our decision is a result of the recognition of the hospitality and distances with the academic world and to bet in strong innovation, the commitment of the Portuguese Government, of the multilingual skills of the investigation and development in Portugal thus taking advantage of the local population“ as well as its professionalism and ability, and proven success Portuguese engineer’s excellence. in innovation areas.” João Picoto, Chairman of Nokia Siemens Networks Chris Dedicoat, Senior Vice-President for Europe, Cisco Portugal ” ” Why choose Portugal? Portuguese Naval Industry Overview R&D The industry in Portugal Main institutions Government support Portuguese Naval Industry Overview The naval construction and repair offer competitive advantages due to its privileged location:: Portugal is located on the meeting point of the major maritime international routs. 9 Sea Ports in Portugal, all with The opening in international 2014 of the traffic Panama Canal allowing “Post Panamax” ships. The Lisbon Port represents 34% of all cargo shipped in Portugal, followed by Leixões (32%) and Sines (28%); they are also served by rail lines; The weather conditions are unique for the practice of naval activities. 12 Portuguese Naval Industry The Industry in Portugal •Shipbuilding and ship repair industry in Portugal has been following the world and the European descend trend, but showed a recovery from 2010 and an increase in completions from 2011. •The SME have showed a better response to the world crisis. •This area has a strong exporting component, contributing for the reduction of the deficit. World Commercial Shipbuilding Activity Portuguese Commercial Shipbuilding Activity 200 100 150 75 100 50 1000 1000 CGT Millions Millions CGT 50 25 0 0 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 New orders Orderbook Completions New orders Orderbook Completions Source: AIN – Associação das Indústrias Navais CESA – Community European of Shipyards’ Association Portuguese Naval Industry The Industry in Portugal Type of vessels built in domestic yards, between 2008 and 2011, changed a lot. Between 2008 and 2011 were mainly built ferry-boats, containers, fishing vessels and recreational craft and sports. Type of vessels produced in Portuguese shipyards Recreational crafts and sports produced in Portuguese shipyards Recreatio 2008 2011 Fishing nal craft Ferry- vessels and boats 8% sports 15% Factory 25% vessels for fishery 22 Fishing 3% 20 ships and Recrea floating tional craft Other no 14 plataform and sports cargo s 63% vessels stuctures Contai 3% Million euros 3% ners Conver 30% sion of Conver ships, sion of 2009 2010 2011 floating Other no Fishing ships, structures cargo Factory vessels floating 15% vessels vessels 7% structures 4% for fishery 23% 1% Source: AIN – Associação das Indústrias Navais Portuguese Naval Industry The Industry in Portugal Portugal will always have a significant market share on ship maintenance, dealing with vessels trading either cross-Atlantic or within the EU. For vessels over 30.000 dwt, Portugal (Lisnave) is the European leading country in terms of vessels dry docked. Portuguese Sector main figures 2011: • Number of companies: 361 • Employment: 3.476 • Repair and maintenance:1.660 • Shipbuilding: 1.816 • GVA: € 76 Millions; • Turnover : € 220 Millions • Main areas: metallic constructions metallic ship constructions, repair and maintenance Source: AIN – Associação das Indústrias Navais Portuguese Naval Industry The Industry in Portugal (North/ Center) SHIPBUILDING | REPAIR REPAIR ESTALEIROS NAVAIS IRMÃOS VIANA ESTALEIROS NAVAIS DE VIANA DO CASTELO SHIPBUILDING REPAIR SAMUEL & FILHOS BRUNSWICK MARINE EMEA OPERATIONS SHIPBUILDING | REPAIR SHIPBUILDING | REPAIR UNIÃO CONSTRUTORA NAVALRIA NAVAL SHIPBUILDING | REPAIR SHIPBUILDING | REPAIR ESTALEIROS NAVAIS ATLANTICEAGLE DE PENICHE SHIPBUILDING ARSENAL DO ALFEITE 16 Portuguese Naval Industry The Industry in Portugal (South) REPAIR SHIPBUILDING | REPAIR CECÍLIO E CARLOS NAVAL ROCHA SANFINS SHIPBUILDING | REPAIR SHIPBUILDING | REPAIR REPAIR ATLANTICEAGLE ARSENAL DO HIPBUILDING JAIME FERREIRA MPG – MANUEL PIRES ALFEITE LISNAVE NAVALRIA GUERREIRO SHIPBUILDING NAVALGRUPO REPAIR NAUTIBER – ESTALEIROS NAVAIS LISNAVE JAIME FERREIRA CONAFI DOMENAVAL GUADIANA ARSENAL DO ALFEITE 17 SOPROMAR PORTINOVE Portuguese Naval Industry The Industry in Portugal Wage structure on Portuguese shipyards. Ship Maintenance Specialized Administrative Industrial Support Industrial Support Naval Engineer and Architect M a s te r Naval W orker T e c h n ic ia n T e c h n ic ia n A s s is ta n t T e c h n ic ia n A s s is ta n t 3.700 - 1.100€ 2.450 - 850€ 2.100 - 850€ 2.000 - 1.100€ 1.300 - 500€ 1.700 - 500€ 1.500 - 1.100€ 1.200 - 500€ 18 Source: AICEP Market research Portuguese Naval Industry Highlights LISNAVE, the largest ship repair company in Europe, developed a non conventional docking system (Hydrolift), which is unique in the world - the most advanced system in Europe for ships under repair. Lisnave Shipyard is iideally located for vessels trading or passing through Atlantic and Mediterranean waters and offers a global range of services for vessels of all sizes, include off-shore platforms for wind towers of renewable energies. Navalria start producing various types of modern vessels including, off-shore platforms for wind towers and wave energy devices. Joana Vasconcelos new work of art - transformation of an old boat that will be on show in Venice, is being produced at Navaltagus, a ship building and repair company . Portuguese Naval Industry Highlights Arsenal do Alfeite, S.A. is dedicated mainly to the fulfilment of the repairing and maintenance activities needs of Portuguese Navy’s naval force, providing its services also to other OTAN members, naval forces and commercial entities. Arsenal do Alfeite, S.A. employs the most advantage technology available in the fields of electronics, optronics, armament, mechanics and electrotechnical engineering. Together with the Naval industry, in Portugal also the Naval Auxiliary Industry was developed. It includes the services, goods, and equipment suppliers for the naval construction and repair industry.