IDB

Shipbuilding Status upon the market turmoil

Chinese TaipeiOECD Shipbuilding Workshop

December 5, 2008

IDB ContentsContents

I、Summary of Shipbuilding Industry in Chinese Taipei1、Tendency of shipbuilding industry2、Annual output value analysis base upon products3、Composition of shipbuilding industry

1

II、 Policy in Response to Financial Crises on Government Side

III、 Proposal in Response to Financial Crisis on Shipyard Side

IDB

I、Summary of Shipbuilding Industry in

2

Chinese Taipei

IDB 1. Tendency of Shipbuilding Industry1. Tendency of Shipbuilding IndustryAnnual Output Value Analysis in Recent Decade

1913

1691

13381223

1165

1,500

2,000

USD

: M

illi

on)

Equipment/parts manufactory

Yacht shipyards

small-sized Shipyards

Medium-sized Shipyards

Large-sized Shipyards

3

10719811003

10381165

1093

0

500

1,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year

Annual

outp

ut

valu

e (

U

*e

Source: IDB e: Estimated by USDDC

IDB

2007 2007 Output ValueOutput Value：：1,6911,691

2.Annual output value analysis base upon 2.Annual output value analysis base upon productsproducts

19991999Output ValueOutput Value：：1,0931,093

UnitUnit：：USD, millionUSD, million

Merchant ships,

858, 50%

Equipment/parts,

164, 10%

repairs, 163,

10%Patrol boats

Merchant ships,

565, 51%repairs, 58, 5%

Equipment/parts,

58, 5%

4

10%

Patrol boats,

66, 4%

Fishing vessels,

113, 7%

Work boats, 38,

2%

Yachts, 289,

17%

Patrol boats,

137, 13%

Yachts, 106,

10%

Passenger

ships, 6, 1% Fishing vessels,

98, 9%

Work boats, 66,

6%

Source: IDB

IDB The Status of Shipbuilding Industry in Chinese TaipeiThe Status of Shipbuilding Industry in Chinese Taipei

Container shipContainer shipFourth largest builderin terms of order book in the world.

5

MegaMega--yacht yacht Fifth largest Country in terms of order book for yachts’ length in the world.

Source : Horizon Yacht Corp.

Source ： CSBC Corp.,Chinese Taipei

IDB 3.Composition of Shipbuilding Industry3.Composition of Shipbuilding Industry

• CSBC Corp.,Chinese Taipei only. • Focus on construction and repair of merchant

ships. • Employees：2,780

Medium-sized Shipyards

• About 5 shipyards.• Specialized in patrol、work and fishing vessel. • Employees：1,430

Small-Sized• About 76 shipyards.• Only about 13 of shipyards have ability to

Large-sized ShipyardsStatistics of the Employees

devoted to Shipyards

Equipment /Parts co., 1150, 9%

6

• About 31 shipyards.• Specialized in FRP yachts building. • Employees：5,640

Shipyards

• About 10 companies.• Employees：1,150

Yacht shipyards

y py ybuilt, the rest engage in repair of ship.

• Employees：1,200

Equipment /Parts co.

Total employees and sub-contractors : 14,500

Large-sized shipyards, 2780, 23%

Medium-sized shipyards, 1430, 12%

Small-Sized shipyards, 1200, 10%

Yacht shipyards, 5640, 46%

IDB Distribution of Chinese Taipei’s ShipyardsDistribution of Chinese Taipei’s Shipyards

Medium-sized ShipyardsJong-Shyn, Ching-Fu, Fong-Kuo, etc.

CSBC Corp.,Chinese Taipei(Keelung Yard)

TaipeiKeelung

7

CSBC Corp.,Chinese Taipei(Kaohsiung Yard)

Yacht shipyards, such as Horizon, Jade, President, KhaShing, etc.

Kaohsiung

IDB Merchant Shipbuilding IndustryMerchant Shipbuilding Industry

– Established in 1973.– Carried out the Restructuring Plan to restructure

organization and to re-create new Business Model in 2001.

– The revenues come from 4 divisions of Commercial Ship 、Naval Vessel 、Repair and Machine-fabricated .

Revenues of Commercial Ship in recent decadeCSBC Corp., Chinese TaipeiCSBC Corp., Chinese Taipei970

858

573557468433

623565

600

900

1,200

ues

(U

SD

: M

illi

on

) Forecast

8

– Standing high among those leading ones in the world.

– The state-owned CSBC Corp., Chinese Taipei will be privatized before end of 2008 .

Source ： IDB, Chinese Taipei

468379414433

0

300

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YearA

nn

ual

Rev

enu

●A comparison of new orders between 2008 and 2007 decreases 80％ because of global faltering economy .

●58 vessels for orderbook as end of Oct. 2008, the berth is busy until Q2 of 2012.

IDB

II、 Policy in Response to Fi i l C i i G t Sid

9

Financial Crisis on Government Side

IDB

●Stimulus demand for domestic shipbuilding industry.

●Encouraging and supporting energy-saving research in shipbuilding technology to meet the issues on shortage

10

of energy.

●Accomplishing the privatization for state-owned shipyard to increase its flexibility.

IDB

III、Proposal in Response to Financial Crisis on Shipyard Side

11

IDB

●Explore new and good ship-owners .

●Create diversified business.

12

● Develop green technologies.

●Increase productivity and shorten the building time .

●Cost down.

IDB

Thank you for your attention.Thank you for your attention.

13