PEER REVIEW OF THE ITALIAN

SHIPBUILDING INDUSTRY

Q1 2024
2  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Foreword

This report was prepared under the Shipbuilding Committee peer review process. The opinions expressed
and the arguments employed herein do not necessarily reflect the official views of OECD member countries. The
report will be made available on the Shipbuilding Committee website: http://www.oecd.org/sti/ind/shipbuilding.htm.
This document, as well as any data and any map included herein, are without prejudice to the status of or
sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any
territory, city or area.

© OECD 2024
The use of this work, whether digital or print, is governed by the Terms and Conditions to be found at
http://www.oecd.org/termsandconditions.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY 3

Table of contents
1. Executive summary 4
2. Introduction 5
3. Global perspectives 6
4. Structure and characteristics of the Italian marine industry 8
5. Policies affecting the shipbuilding and marine equipment industry 24
6. Conclusion 30

FIGURES
Figure 1. Completions of selected seagoing vessels worldwide and in the European Union in terms of CGT, 2012-2022 6
Figure 2. Completions of selected seagoing vessels in the European Union and Italy in terms of CGT, 2012-2022 7
Figure 3. The value of the shipbuilding sector in GDP, 2013-2020 8
Figure 4. Completions and Number of seagoing vessels built in Italy, 2008-2022 10
Figure 5. Completions and number of seagoing vessels contracted in Italy, 2008-2022 10
Figure 6. Average building period of seagoing vessels in Italy, 2008-2022 11
Figure 7. Italy’s imports and exports of ships, boats, and floating structures, 2010-2021 11
Figure 8. Shipbuilding capacity of selected Italian Shipyards 18
Figure 9. Employment trend in Italian shipyards 22

TABLES
Table 1. Completions of selected seagoing vessels above 100 GT by ship type in the world, the European Union and
Italy, 2012-2022 7
Table 2. Regional ratios of shipbuilding and ship repair activities in Italy 13
Table 3. Main Shipbuilding Yards 15
Table 4. Main ship conversion, ship repairing or recycling yards 15
Table 5. Main companies in the maritime equipment sector 15
Table 6. Italian shipbuilder’s completions by selected ship types in thousands of CGT (2013-2022) 17
Table 7. Major shipyard activity 19
Table 8. SWOT analysis of Italian shipbuilding industry 23
Table 9. Relevant stakeholders of the maritime cluster in Italy 26
4  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

1. Executive summary

The Italian shipbuilding industry was responsible for 36% of the world's cruise ships in 2022. With a strong
supply chain involving local enterprises, the Italian shipbuilding industry has maintained an advanced
position in shipbuilding technology, enabling it to support the domestic economy and employment.
Whereas in the past Italy’s shipbuilding industry was known for the wide range of types of ships, the rise
of East Asian countries led to a decline in its global market share in the 20th century, making the industry
shift to a more specialized production of complex ship types, especially cruise ships.
In addition to increased competition, Italy has recently faced various economic challenges which affected
the shipbuilding industry such as low economic growth following the 2008 financial crisis and the COVID-
19 pandemic. Italian shipbuilders have responded to these challenges with agility and continued to expand
their activities.
Fincantieri is the largest shipbuilder in Italy, and one of the most important cruise shipbuilders in the world.
It has built more than 90% of the ships on a CGT basis in Italy in 2022. Most of Fincantieri's shares are
held by a subsidiary of Cassa Depositi e Prestiti S.p.A. (CDP), which is a prominent Italian investment
bank founded in 1850 with 82.77% of the share capital owned by the Italian Ministry of Economy and
Finance, the 15.93% held by various banking foundations and the remaining 1.30% by CDP itself with its
own shares.
Italy’s high dependence on cruise and passenger ships may also represent a risk. When the demand for
cruise and passenger shipbuilding falls due to external factors, the Italian shipbuilding industry can suffer
a shock as was the case in 2020 and 2021 during the COVID-19 pandemic. In addition, the construction
of cruise and passenger ships by other growing economies could be a threat to the industry.
In addition to the EU actions for the shipbuilding industry, the Italian government has attempted to lead the
industry towards sustainable growth such as innovation and decarbonization in the maritime sector, under
Ministerial decree n. 196 and the Green Shipping Ministerial Decree. The government has been minimizing
its market interventions not only in accordance with the WTO and EU rules but also making an effort to
improve transparency on government support by obliging companies to publish the amounts they obtained
from Italian authorities in the preceding year.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY 5

2. Introduction

In 2012, the OECD’s Council Working Party on Shipbuilding (WP6), which became on the 1st of January
2024 the OECD Shipbuilding Committee, introduced a peer review process focused on support measures
provided by governments to their shipbuilding sectors. Under this process, each economy participating in
the Shipbuilding Committee undergoes an in-depth study of its shipbuilding industry and related
government measures. Non- Shipbuilding Committee economies may join the process and can also be
the subject of a Shipbuilding Committee review.
The main goal of the peer review process is to identify government policies, practices and measures
affecting the shipbuilding sector and to support the discussion of these measures within the Shipbuilding
Committee. The analysis of the support measures is accompanied by contextual details of the industry to
enable a discussion of shipbuilding policies and their impact. A key element of the process is the active
debate and discussion of peer review drafts by Shipbuilding Committee participants, with a view to
promoting transparency and sharing experiences.
Italy, together with Croatia, Denmark, Poland, and Romania, is subject to a Shipbuilding Committee peer
review in 2023, following the reviews of Japan (2012), Portugal (2013), Korea (2014), Germany (2015),
Norway (2016), Finland (2017), the Netherlands (2019) and Republic of Türkiye (2021). In 2018, the
Shipbuilding Committee decided to conduct an ad hoc review of the shipbuilding sectors in selected non-
Shipbuilding Committee members, including the People’s Republic of China (hereafter ‘China’), Indonesia,
Malaysia, the Philippines, Singapore, Chinese Taipei and Viet Nam. In 2020, the Secretariat also prepared
a report on China’s shipbuilding industry and policies affecting it.
The information in this report is based on publicly available information, statistical series available to the
Secretariat, Italy’s response to the peer review questionnaire, and discussions with government officials
and stakeholders during the Secretariat’s mission to Italy (15-6 June 2023). The Secretariat expresses its
special gratitude to the government and industry stakeholders who participated in the review and especially
the successful mission to Italy.
The analysis focuses on the shipbuilding industry but also provides information on the marine equipment
sector, and repair and conversion facilities. The report includes five substantive parts: global perspectives,
an overview of the Italian shipbuilding industry, structure of the industry, analysis and finally policies
affecting the shipbuilding and marine equipment industry.
6  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

3. Global perspectives

In 2022, the EU produced about 9% of the world’s selected vessels in CGT terms (Table 1), increasing
from 7% in 2021 and 6.3% in 2020 (Figure 1). The EU shipbuilding industry was affected by the large
impact of the COVID-19 pandemic, with its ship completions decreasing from 27% in 2020 (Figure 2).
Like many other countries, Italy was hit hard by the 2008 financial crisis. The crisis led to a contraction of
the Italian economy, resulting in negative GDP growth in the following years followed by a period of slow
growth.
In addition, the COVID-19 pandemic, which started in early 2020, had a severe impact on the Italian
economy. The country faced a significant fall in GDP due to lockdowns, disruptions to businesses, and
reduced economic activity, with its real GDP decreasing by 9.0% in 20201.
In 2021, the Italian economy recovered, with its real GDP increasing by 7.0%. From 2021, however, the
Italian economy has been affected by the Russia’s war of aggression against Ukraine, which contributed
to an energy crisis and high inflation. Real GDP in 2022 was 3.8%, and the Italian economy is expected to
grow modestly in 2023 and 2024 according to the OECD Economic outlook.
Italy, accounts for about 35%, 30% and 37% of the EU’s CGT production in 2022, 2021 and 2020,
respectively (Figure 2). Contrary to the rest of the EU, Italy did not experience a fall in ship completions in
2020, although the number of new orders received by Italian yards decreased.

Figure 1. Completions of selected seagoing vessels worldwide and in the European Union in terms of CGT,
2012-2022

Note: This figure includes all seagoing vessels, presented in Table 1, from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (July 2023), World Fleet Register,
https://www.clarksons.net/wfr
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY 7

Figure 2. Completions of selected seagoing vessels in the European Union and Italy in terms of CGT, 2012-
2022

Note: This figure includes all seagoing vessels, presented in Table 1, from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (July 2023), World Fleet Register,
https://www.clarksons.net/wfr

Table 1. Completions of selected seagoing vessels above 100 GT by ship type in the world, the European
Union and Italy, 2012-2022

Ship type World European Union Italy

CGT ('000s) CGT ('000s) % of World CGT ('000s) % of World % of EU
Ferries 9 941 1 534 15.43% 226 2.27% 14.73%
Cruise 12 976 11 918 91.85%
4 680 36.07% 39.27%
ships
Tankers 121 123 1 641 1.35% 17 0.01% 1.04%
Bulkers 125 157 368 0.29% - - -
PCC 6 001 129 2.15% - - -
Dredgers 2 356 864 36.68% 14 0.59% 1.62%
Cargo 9 899 440 4.45% 3 0.03% 0.68%
Offshore 24 061 1 698 7.06% 70 0.29% 4.12%
Ro-ro 3 638 539 14.81% 54 1.48% 10.02%
Note: This table includes all seagoing vessels from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (July 2023), World Fleet Register,
https://www.clarksons.net/wfr
8  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

4. Structure and characteristics of the Italian marine industry

4.1. Presence of the industry

4.1.1. Contribution to the national economy

The share of Italy’s shipbuilding industry in GDP has been following an upward trend in the last 8 years.
Data available from 2013 to 2020 shows that the value of the shipbuilding sector, considering the sum of
commercial shipbuilding and leisure ship production, has varied between 0.26% of GDP in 2013 and 0.54%
in 2020 (Figure 3). The ratio of commercial vessels (without leisure boats), which do not include the
demand from public or military sectors, was 0.16% in 2013 and increased to 0.40% in 2020.
Although the contribution of the shipbuilding industry looks small in Italy, the Italian shipbuilding industry is
building strong supply chains with local enterprises as will be described later. This indicates that the Italian
shipbuilding industry supports the local economy and employment.

Figure 3. The value of the shipbuilding sector in GDP, 2013-2020

Source : I.stat, http ://dati.istat.it/

4.1.2. Production and orders

From 2008, the production of vessels decreased to reach 210k CGT in 2013. After that, and until 2015, it
remained at a low level between 200-320k CGT, compared to 768k CGT in 2010. The number of vessels
built per year also decreased from 34 at maximum in 2009 to a minimum of 8 in 2014.
Ship production began to grow again from 2016 when its volume recovered to 492k CGT. On the other
hand, the number of vessels did not increase showing that the Italian shipbuilders have shifted to the
construction of larger vessels, especially from 2016 (Figure 4).
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY 9

This trend is underpinned by the recovery of the world economy and of the shipbuilding market including
cruise ships. The increase in exports explains the recovery of the Italian shipbuilding industry, which is
also based on a variety of elements:
• Its skilled workforce, which remained employed in shipyards even during crisis periods and the
strong decline that hit the sector in 2014 and 2015.
• Italian shipyard flexibility which allowed the industry to build various cruise vessel types and to
deal with various dimensions of requests emerging after the 2015 crisis.
• Several R&D initiatives facilitated technological upgrades and innovation in shipbuilding
processes.
Vessel orders followed a different trend than vessel production. After the number of contracted vessels
decreased sharply in 2008, the orders in number of vessels and tonnage in CGT recovered gradually and
remained at a high level until 2019. (Figure 5).
After 2020, however, the COVID-19 pandemic and the consequent collapse of the cruise market have had
a very negative impact on new orders. During 2020 and early 2021, most of the cruise fleet has been idled
and new orders decreased sharply to almost 0. European ship orders also fell by 64% in 2020, much
more than in other geographical areas. This is because both in Europe and in Italy, more than 80% of ships
ordered in CGT are cruise ships.
The cruise industry is characterized by a particularly complex supply chain which involves many players
who operate upstream and downstream of shipbuilding. The bottle neck of the supply chain appears in the
average building period, which increased from 1,072 days in 2018 to 1,867 days in 2020. The same trend
was observed in 2014 (Figure 6).
In such a critical situation, the Italian shipbuilders managed to minimize cancellations and/or negotiated
the postponement of the construction of some of the new ships ordered, based on the strategic and
operational skills of its managers and their ability to interact with shipowners. Moreover, with the recovery
of cruise shipping from 2021 onwards, new orders have started to grow again.
The value of the orderbook of Italian shipbuilders on 31 March 2023 amounts to 22.7 billion euros (23.8
billion euros on 31 December 2022) with 89 cruise ships in the portfolio, and the soft backlog at
approximately 11.3 billion euros (10.5 billion euros on 31 December 2022).
Between 2022 and 2028, 87 cruise ships are expected to be delivered globally, with an estimated value of
over USD 51 billion and a total capacity of about 182k beds. European builders (Italy, Germany, Finland
and France) dominate the newbuilding market.
40% of these 87 vessels are expected to be built by Italian shipyards, with Fincantieri (33) and T. Mariotti
(2) representing a value of almost USD 22 billion (43% of the world total).
10  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Figure 4. Completions and Number of seagoing vessels built in Italy, 2008-2022

Note: This figure includes all seagoing vessels from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (January 2023), World Fleet Register, https://www.clarksons.net/wfr.

Figure 5. Completions and number of seagoing vessels contracted in Italy, 2008-2022

Note: This figure includes all seagoing vessels from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (January 2023), World Fleet Register, https://www.clarksons.net/wfr
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  11

Figure 6. Average building period of seagoing vessels in Italy, 2008-2022

Note: This figure includes all seagoing vessels from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (January 2023), World Fleet Register, https://www.clarksons.net/wfr.

4.1.3. Ship imports and exports

Figure 7 shows the total imports and exports of ships. Before 2013, the Italian imports and exports were
balanced. Since 2014, the export volume has been exceeding imports. In response to the decrease in
domestic shipbuilding demand, particularly the demand for cruise ships and ferries on which Italy focuses
most of its production, Italian shipbuilders may have steered their companies to export since 2014.
According to the Italian International Registry, about 515 major ships are listed under the Italian flag. More
than 74% of these vessels, about 380 units, have been made in Korea, China, Europe, Viet Nam and the
United States; the rest of the vessels, about 120 units, are domestically built.

Figure 7. Italy’s imports and exports of ships, boats, and floating structures, 2010-2021

Source: I.stat, https://www.coeweb.istat.it/

12  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

4.1.4. Features of the Italian shipbuilding industry

The Italian shipbuilding industry has a long and rich history from the time of the Roman Empire. Since
then, Italy has been involved in shipbuilding for both commercial and naval purposes.
In the 20th century, Italian shipbuilding production was widespread across the entire range of vessel types,
from passenger ferries to bulk carriers, and from luxury liners to tugboats. Towards the end of the century,
the role and weight of the Italian cargo shipbuilding industry had strongly decreased, because of the
competition from new players in East Asia.
Unlike freight ships, passenger and cruise ship sectors have remained economically profitable given the
limited number of producers for this type of high added-value vessels. Therefore, some Italian companies
were able to specialize in cruise and passenger ships, driving investments in this sector, especially aimed
at increasing quality. Some of the previously freight-oriented shipyards shifted their activities into
conversion, ship repair or ship modification processes:
• SEBM (ex Fincantieri): Cantieri del Mediterraneo (private company); Ship repairing, refitting and
modification
• Nuovi Cantieri Apuania: Italian Sea Group; Reparation and refitting commercial ships and yachts
production
• INMA di La Spezia: Leisure boat shipyard
Today, Italy is one of the world’s leading producers of cruise and passenger ships. Table 1 shows Italy’s
share in world ship completions between 2013 and 2022 which was approximately 36% for cruise ships.
Italy also accounted for 2.5% of the production of ferries and 1.7% of Ro-Ro ships (Roll-on/roll-off). During
this period, Italian yards produced cruise ships for a total tonnage of 4,348 k CGT which is about 19 times
more than ferries with a tonnage of 224 k CGT between 2013 and 2022.
There are some reasons why Italy plays such an important role in the international yacht and cruise
market2. First, Italy has an accumulated shipbuilding technology based on its geological and historical
advantages. Italy has 7,900 km of coastline on the Mediterranean and the Adriatic, with numerous ports
with a high presence of yachts and cruise ships 3. In addition, it originally has a large market for cruise ship
tourism, which together with its geographical background could have contributed to the demand for such
vessels and hence Italy’s leading position in the development of high technical skills in the construction of
large cruise ships.
Second, to produce high-end yachts and cruise ships, it is also required to be able to provide high-tech
and good quality interior equipment. Italy hosts a favourable environment for mega-yachts production
throughout its industrial ecosystem. Italian shipbuilders are known for their expertise in designing and
building high-end luxury yachts, with a particular focus on customization and attention to detail.
In addition, Italy hosts yacht shows and competitions including the Genoa Boat Show, which have been
taking place since 1962. This show is one of the biggest yacht expositions with 986 leading industrial
manufacturers from 25 countries around the world participating, and more than 1,000 new yachts released.
According to the Genoa International Boat Show manager, 84 buyers from 32 countries were invited to
hold export consultations in cooperation with the Italian Trade Corporation in 2018. Italian manufacturers
are also very active in international exhibitions such as the IBEX Show and METS Trade in Amsterdam.
Since 1969, Barcelona, the world’s largest yacht competition, has also held in Italy, in the Gulf of Trieste,
organized by the yacht club Società Velica di Barcola e Grignano. In this competition, about 10,000
competitors and 2,000 participate every year.
The Italian shipbuilding industry proved itself capable of competing worldwide in high complexity product
segments, such as cruise ships and naval vessels. Such capabilities can be taken as an indication of the
high quality of research and development activities performed locally by the companies and can potentially
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  13

benefit (through well-known spin-out mechanisms) all other products built by the same companies or by
their partners.

4.2. Upstream industries

Since the mid-nineteenth century, when steel ships started to be built, steel mills became located near
ports with shipyards facilitating the supply of key inputs for steel plants notably coal and iron ore. This
connection is clearly visible in the following example: in Genoa (GE) with the steel mill of Cornigliano, with
the “RTS SpA”; in Piombino (LI) with the “JSW SpA” and the “Lucchini SpA”, Mestre (VE) and Taranto (TA)
with “Acciaierie Italia” that is now one of the biggest steel blast furnaces of Europe.
Italian shipyards involved in cruise ships production need a wide range of products and services. These
yards have contributed to developing a network of other industrial, artisanal, and service companies
allowing the supply of their required inputs.

4.3 Shipbuilding districts

In Italy, the shipbuilding industry is notably located in the five following areas:
• North Tyrrhenian area: Genoa and surrounding (Genova, La Spezia and Massa).
• Center Tyrrhenian area: Naples and surrounding historical (Naples and Castellammare di Stabia).
• South Tyrrhenian area: Palermo.
• North Adriatic area: Monfalcone (Monfalcone, Trieste, Venice and Rovigo).
• Center Adriatic area: Ancona and Ravenna.
The areas in which the shipbuilding industry is more active correspond to the ones in which there are more
vibrant ecosystems of supporting associations, academic institutions, and infrastructures. Such
ecosystems at a regional level are tasked with designing and managing supporting activities for small- and
medium-sized enterprises (SMEs), as well as facilitating technological transfer activities.
At a national level such ecosystems are further fostered by Technology Clusters (Blue Italian Growth and
Transport) whose main task is to help the industry and the academia establish joint partnerships.

Table 2. Regional ratios of shipbuilding and ship repair activities in Italy

Region Ratio (%)

Liguria 17.7
Friuli-Venezia Giulia 17.1
Toscana 13.2
Marche 11
Campania 7.9
Veneto 7
Emilia-Romagna 6.3
Lombardia 5.4
Piemonte 5
Sicilia 4.4
Lazio 2.2
Puglia 1.2
Sardegna 0.7
14  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Calabria 0.5
Molise 0.2
Basilicata 0.1
Abruzzo 0.1
Umbria 0.1
Trentino-Alto Adige 0.0
Valle d'Aosta 0.0
Note: Percentages indicate the ratio of the national production of shipbuilding ship repair activities in each region
Source: Report tecnico Anticipazione dei fabbisogni professionali nel settore della cantieristica navale,
https://oa.inapp.org/xmlui/bitstream/handle/20.500.12916/865/INAPP_Mencarelli_Mereu_Anticipazione_dei_fabbisogni_
professionali_nel_settore_della_cantieristica_navale_2021.pdf

4.5 Enterprises

The “blocks” of ships are manufactured by different shipyards and then assembled in the final shipyard.
This production process requires coordinated manufacturing protocols and standards. For instance,
Fincantieri has already produced and shipped, from other drydocks, cruise vessel blocks to be integrated
into the Monfalcone shipyard.
When the logistics for this type of production are not possible, some shipyards reorient themselves towards
repair and maintenance, such as the “Nuovi Cantieri Apuania” shipyards and, partly, Fincantieri Palermo
which is now specializing in maintenance and reparation of a very large vessel. Other shipyards get
focused on smaller special vessels, such as the “Cantiere Rosetti” of Ravenna (for offshore structure,
supply vessel and tugboat) or the “Cantiere Vittoria” of Adria (RO) (for fast/defense ship/boat, superyacht,
special craft, etc.). Table 3 and Table 4 show the main enterprises in the Italian maritime sector.
Four of these 27 firms (Wartsila, Cantieri del Mediterraneo, Cartubi and Cantiere Jolly) were state-owned
enterprises, which were sold by the government and purchased by private owners during the 1990s. In
Italy, as in other European countries, the restructuring of shipbuilding took place in the 1990s. Some state-
owned enterprises, such as "Arsenale Triestino" of Trieste and the "Società Esercizio Bacini Meridionali"
SEBM SpA of Naples, were sold to private sector companies.
Currently, the Italian shipbuilding and ship repair cluster companies are mostly private. Fincantieri, the
largest shipbuilding company in Italy, is a publicly listed company on the Milan Euronext stock exchange.
Most of its shares are held by a subsidiary of Cassa Depositi e Prestiti S.p.A. (CDP), which is a prominent
Italian investment bank founded in 1850 with 82.77% of the share capital owned by the Italian Ministry of
Economy and Finance, the 15.93% held by various banking foundations and the remaining 1.30% by CDP
itself with its own shares. An overview of its ownership structure is in Box 1.
The only significant foreign marine equipment company with production capacity in Italy is Wartsila. It
builds and maintains ships’ main propulsion engine in Trieste. In the 1970s, the factory named G.M.T. was
owned by Fiat Grandi Motori, Ansaldo and CRDA. Fincantieri acquired the company in 1984 and in 1999
it was purchased by the Wartsila Group (Finland). The plant in Trieste is only active in research and
development and on the ship’s installed engine. During the 1970s, about 3000 workers were employed in
the company, now they are less than 500. Wartsila is now a Finnish firm, while Cantieri del Mediterraneo,
Cartubi and Cantiere Jolly are owned by Italian holders.
No recent closures of major shipyards or equipment manufacturing plants happened except for “Nuovi
Cantieri Apuania” in Carrara (MS), which has been converted to yacht production through the Italian Sea
Group. On the other hand, around 4% of SMEs in the maritime industry cluster shut down each year in
the last 12 years.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  15

Table 3. Main Shipbuilding Yards

FINCANTIERI Cantiere Castellammare di Stabia (NA)

Cantiere Riva Trigoso (GE)
Cantiere Muggiano (SP)
Cantiere Marghera (VE)
Cantiere Monfalcone (TS)
Cantiere Ancona (AN)
Cantiere Sestri (GE)
FINCANTIERI Cantiere Palermo (PA)

GENOVA INDUSTRIE NAVALI Mariotti shipyard (GE)

CANTIERE NAVALE VISENTINI Chioggia (VE) shipyard
Porto Viro (RO) shipyard
CANTIERE ROSETTI MARINO Ravenna (RA) shipyard
CANTIERE NAVALE VITTORIA S.p.A Adria (RO) shipyard
INTERMARINE S.p.A. and CANTIERI NAVALI Sarzana (SP) shipyard, and Messina (ME) shipyard
RODRIGUEZ (IMMSI Group S.p.A)
LIBERTY LINES S.p.A Trapani (TP) shipyard

Source: Published documents, by some firms and from the Assonave annual report, https://www.assonave.it/

Table 4. Main ship conversion, ship repairing or recycling yards

FINCANTIERI Bacino galleggiante Genova (GE)

Cantiere ATSM Trieste (TS)

GENOVA INDUSTRIE NAVAL Genova shipyard, recycling (GE)

San Giorgio del Porto Piombino (LI) shipyard
Piombino Industrie Marittime
CANTIERI DEL MEDITERRANEO Napoli (NA) shipyard
PALUMBO SHIPYARDS NAPOLI S.r.l. Napoli (NA) shipyard
LA NUOVA MECCANICA NAVALE S.r.l. Napoli (NA) shipyard
THE ITALIAN SEA GROUP Cantiere di Marina di Carrara (MS)
NAVALIMPIANTI NAVIM S.p.A Ceranesi (GE) shipyard
IGNAZIO MESSINA Cantiere di Genova (GE)
CARTUBI Srl Trieste (TS) shipyard
CANTIERE NAVALE GRUPPO JOLLY Taranto (TA) shipyard

Source: Published documents, by some firms and from the Assonave annual report, https://www.assonave.it/

Table 5. Main companies in the maritime equipment sector

WARTSILA (propulsion engine) Trieste (TS) facility

ISOTTA FRASCHINI MOTORI (engine and generator) Bari (BA) facility
ECOSPRAY TECHNOLOGY (maritime equipment, scrubber, antipollution) Alzano Scrivia (AL) facility
TECNIMPIANTI NAVIM S.p.A Livorno (LI) and Palermo (PA) facilities
IDAL GROUP S.p.A. (steel carpentry and accessories) Napoli facility
CANEPA & CAMPI Srl (safety accessory) Genova (GE) store
FAGIOLI S.p.A. (plant engineering, cranes, and handling) Sant’Ilario d’Enza (RE)
GARBARINO POMPE S.p.A Aqui Terme (AL)
GAMAP Srl (ship furniture and technical equipment) Trieste (TS)
ELETTROTECNICA PERGOLO Srl (electric and electronic equipment) Genova (GE)
16  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

ELETTRONIS Srl (electric and electronic equipment) Napoli (NA)

GHISALBA S.p.A. (engine control and automation equipment) Rivoli (TO)

COSNAV S.r.l. (propulsion and governing equipment) -

Source: Financial report of selected firms and Assonave annual report, https://www.assonave.it/

4.5.1. Italian’s shipbuilder’s completion

 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  17

Table 6 shows ship completions by Italian shipbuilders by vessel types. Fincantieri is the largest cruise
ship producer in the world, building vessels for the major global cruise lines. Fincantieri’s ship production
amounted to 4,307k CGT for cruises, and 4,355k of CGT in total production including all types of vessels
between 2013 to 2022. It represented 91.7% of ship production in CGT in Italy.
The following shipbuilder is Navali Visentini. Navali Visentini produces two types of vessels, Ferries (156k
CGT) and Roll-on/Roll-off (54k CGT). In total, it represents 4.4% of Italian ship production.
Within the shipbuilding industry, Fincantieri represents an integrated and complete player which develops
its business horizontally across all segments. This feature makes it a highly valuable company at the global
level as, through the integration of maritime technology, shipyards enable the transfer of know-how along
the supply chain internationally.
Some selected notable orders from Italian shipyards are presented below:
• In June 2022, Snav signed a contract with the Italian shipyard Intermarine for the supply of a fast
ferry with a capacity of up to 750 passengers and 34 knots of speed.
• T.Mariotti is on the shortlist with the Spanish Armon to win the new constructions requested by
RFI which corresponds to a contract of EUR 52.19 million for a couple of dual fuel fast ferries with
a possible option for a third.
• The construction of new ro-pax ferries will continue at the Visentini Shipyard. The A Galeotta was
delivered on 7 December 2022 to Corsica Linea while the next one is formally destined to the
Visemar company of the Visentini family in 2023. Another ferry has already been sold with a ten-
year bareboat charter contract (with a purchase option from the sixth year) to the Polish company
Polferries.
• The delivery of the first Italian tugboat powered by liquefied natural gas and the first barge for
bunkering integrated with it, commissioned by Rimorchiatori Riuniti Panfido to the Rosetti Marino
shipyard in Ravenna, has been postponed to 2023 because of the delays in the completion of
works.
• Fincantieri is about to deliver (in 1Q 2024) its first LNG cruise ship (the “Sun Princess”), which, at
175.500 gross tons, will be the largest ever built in Italy. Among the latest orders of particular
importance collected by Fincantieri in the cruise sector is the order of Four Seasons Yachts (Four
Seasons Hotels and Resorts) for the construction of two (plus another in option) luxury passenger
ships to be built in Ancona with delivery scheduled for 2025 and 2026. The value of the order
amounts to approximately EUR 1.2 billion for the three new buildings.
18  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Table 6. Italian shipbuilder’s completions by selected ship types in thousands of CGT (2013-2022)

Completion Chemical Cruise Dredgers Ferries MPP Offshore Other Ro-Ro Tugs
(2013-2022) Tankers non-Cargo
Thousands of CGT

Arsenale Triestino 1
Azimut-Benetti 2
Group
Cant. Nav. Vittoria 6 4 2 4 4
Fincantieri 4,307 19 13 16
HSC Shipyard 2
Intermarine 11
Sarzana
Lorenzon 2
MMGI Shipyard 2
Navali Visentini 156 54
Rosetti Marino 30 8
San Giorgio 17
San Marco 3 9
T. Mariotti 42 9 3
The Italian Sea 9
Grp
Unknown Yard 8 2
/Italy
Vittoria 2

Note: This table includes all seagoing vessels from 100 GT.
Source: OECD calculations based on Clarkson Research Services Limited (January 2023), World Fleet Register; https://www.clarksons.net/wfr.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  19

4.5.2. Shipbuilding capacity

Figure 8 shows the shipbuilding capacity of Italian shipyards based on a survey by the Ministry of
Infrastructures and Transport.
Table 7 shows the activity of each shipyard from 2007 to 2020.

Figure 8. Shipbuilding capacity of selected Italian Shipyards

Note: When considering the CGT data, it needs to be noted that a part of Fincantieri’s and Cantiere Vittoria’s
productions consists in defence/military vessels production.
Source: Conto Nazionale Italiano Trasporti [Italian National Transport Account],
https://www.mit.gov.it/sites/default/files/media/pubblicazioni/2020-07/Libro%20Web%20CNIT%202018-2019_0.pdf,
https://www.mit.gov.it/nfsmitgov/files/media/pubblicazioni/2022-07/Conto%202020-2021.pdf
20  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Table 7. Major shipyard activity

FIRMS 2017 2018 2019 2020

CGT (units) CGT (units) CGT (units) CGT (units)
Fincantieri S.p.A. 1 440 796 (33) 2 270 987 (37) 2 552 510 (40) 2 629 790 (43)
Cantiere navale Vittoria 7 310 (13) 7 000 (10) 20 795 (15) 19 315 (12)
Cantiere navale Visentini 39 973 (5) 25 476 (3) 37 890 (6) 28 620 (3)
Rosetti Marino 4 960 (14) 0 (12) 0 (0) 0 (3)
Intermarine S.p.A. n.d. (0) 12 534 (1) 27 438 (13) 8 382 (7)
Liberty Lines 2 868 (2) 1 434 (1) 1 434 (1) 0 (0)
T. Mariotti S.p.A. 5 950 (1) 74 350 (3) 77 475 (3) 77 475 (3)
Cantieri navali Mancini n.d. (3) n.d. (3) n.d. (4) n.d. (6)
Cantiere Foschi 150 (1) 300 (2) 450 (2) 0 (n.d.)
Total 1 502 007 (72) 2 392 081 (72) 2 717 992 (84) 2 763 582 (77)
Source: Conto Nazionale Italiano Trasporti [Italian National Transport Account],
https://www.mit.gov.it/sites/default/files/media/pubblicazioni/2020-07/Libro%20Web%20CNIT%202018-2019_0.pdf,
https://www.mit.gov.it/nfsmitgov/files/media/pubblicazioni/2022-07/Conto%202020-2021.pdf
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  21

Box 1. Fincantieri Group

Fincantieri is one of the biggest designers and shipbuilders with 230 years of history and over 7,000 ships built.
It has:
• 18 shipyards in 4 continents
• more than 20,000 employees
• 90,000 including subcontractors, and
• 100 subsidiaries.
Fincantieri’s revenues amounted to EUR 7.4 billion in the fiscal year 2022, and the total backlog amounted to EUR
34.3 billion (as of 31 December 2022).
The main products of Fincantieri are cruise ships and naval vessels. Both accounts respectively for 48.7% and
22.3% of revenues in 2022 with a backlog of 19.678 billion euros. Fincantieri has a diversified product portfolio in
the world combined with a wide client base.
Table: Products, Clients, Revenues and Backlog

Main products Revenues in Backlog Key Clients

2022
Cruise ship* ▪ All cruise ships EUR 4 139 mln, EUR 19 246 mln, ▪ Carnival
Shipbuilding
o Luxury/Niche 51.5 % (in the 57 deliveries to ▪ Norwegian Cruise
o Upper Premium total revenues 2029 Line Holdings
o Contemporary of Fincantieri) ▪ Viking Ocean
• Ship repairs & cruises
Conversion ▪ MSC cruise
Marine ▪ Cabin, Bathroom and EUR 71 mln, ▪ Italian Navy and
Interiors public halls 0.9% Coast Guard
Naval ▪ Surface vessels EUR 2 162 mln, ▪ US Navy
▪ Auxiliary & Special 26.9% ▪ Qatar Emiri
vessels Naval Forces
▪ Submarines ▪ United Arab
Emirates Navy
▪ Algerian Navy
▪ Royal Saudi Navy
Offshore & Specialized ▪ Offshore Wind EUR 751 mln, EUR 1 344 mln, ▪ DOF Subsea
Vessels ▪ Oil & Gas offshore 9.3% 32 deliveries to ▪ Norwind
▪ Specialised vessels 2026 Offshore
▪ Fishery ▪ Norwegian Coast
Guard
Electronics, ▪ Digital services EUR 646 mln, EUR 2 513 mln, ▪ Italian Navy and
Equipment,
systems & comprehensive 8.0% of which EUR 1 996 Coast Guard
Systems &
software & support mln infrastructure ▪ US Navy
Services
Mechanical ▪ Digital asset ▪ MSC cruises
components management ▪ edf Fenice
▪ Marine systems & ▪ Carnival
components
Infrastructure ▪ Structural steel EUR 262 mln,
components 3.3%
▪ Maritime works
▪ Technical buildings
and facility
management (i.e.,
hospitals)

Source: Fincantieri,1Q 2023 Results & 2023-2027 Strategic plan,

https://www.fincantieri.com/globalassets/investor-relations/presentations/results/2023/fincantieri-1q2023-results_2023-
2027_strategic-plan.pdf
22  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Graph: Simplified ownership and Group structure

• Fincantieri shares have been listed on the Milan Stock Exchange since July 3, 2014.
• Its reference shareholder is CDP Industria S.p.A, a holding company fully owned by CDP, owning 71.32% stake. CDP is an Italian
state-owned National Development Institution holding major stakes in several listed / non-listed strategic Italian companies.
• Fincantieri S.p.A. is the Holding company of the Group.
• Fincantieri Marine Group(“FMG”) is the US subsidiary controlling the 3 American yards.
• Vard Holdings Limited is the holding company for the VARD Group, delisted from the Singapore Stock Exchange in 2018.

4.6. Recent Challenges

4.6.1. Employment trend

In the light of the need to pursue the flexibility and cyclicality of the production process, shipyards adopted
lean production lines and lean supply chains, outsourcing a part of work processes that were once internal.
This outsourcing has resulted in a substantial part of the added value chain, about 70-80%4 being produced
outside the plants of the main contractors/companies. Employment data shows a strong reduction of the
active workforce between years the 2008 and 2014, due essentially to the 2008 crisis having its full effects
on the maritime economy with some delay.
Since 2008 and until 2014, the number of employees dropped by 37%, while the gross operating margin
decreased sharply in 2010 and 2012, due to the effects of the 2008 crisis which materialized on the
maritime economy with some delay (Figure 9). The trend was inverted in 2015, and employment started
to increase.
The overall number of firms operating in the sector followed the employment curve, and many small
enterprises were forced to close. Emergency support measures provided by the “cassa integrazione”
(social security fund) can contribute to avoiding the dispersion of specialised labour force in periods of
crisis,
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  23

This restructuring paved the way for the economic rebound of the sector in the following years, allowing
the cluster to have important positive results in the years 2018 and 2019.
When looking at local situations, the effects of these fluctuations in employment in the industrial districts
located in Genova, Naples, Trieste and Monfalcone, and Palermo, amplified the general employment rates
on a local basis.

Figure 9. Employment trend in Italian shipyards

Source: I.stat; http://dati.istat.it/?lang=en&SubSessionId

4.6.2. Maritime decarbonization

As is the case for the global shipbuilding industry, Italian shipbuilders increasingly focus on environmental
sustainability. They act to reduce emissions, optimize fuel consumption, and develop eco-friendly ship
designs. This includes utilizing alternative fuels, implementing energy-saving technologies, and adhering
to strict environmental regulations.
The European measures targeting the reduction of GHG emissions have driven changes both in the
newbuilding and refitting segments. More and more facilities will be equipped with connection systems with
the onshore electricity grid and bunkering infrastructure providing alternative fuels, such as LNG and other
ones from which hydrogen can be obtained and used onboard.
Almost half of the new ships planned for delivery will be powered by LNG and alternative fuels. In terms of
refitting measures, many cruise operators have decided to make significant additional investments
regarding existing orders, modifying, and redesigning the fuel systems of their ships with the transition to
dual-fuel engines.
24  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

4.7. Competitiveness

Table 8 describes selected key strengths, opportunities, weaknesses, and threats (SWOT) of the Italian
shipbuilding industry based on the data and analyses mentioned in the previous sections.

Table 8. SWOT analysis of Italian shipbuilding industry

Strengths Weakness
• High competitiveness in cruise ship building • Specialized and thus vulnerable production of ships.
• Strong supply chain • Gap between the relatively large companies and small
• Transfer of skilled technology and medium-sized companies
• High innovation potential • Labour shortage
• Close links with local economies
• Geographical and logistic convenience

Opportunities Threats
• Increased demand for low-emissions/ zero-emissions • Rise of other countries in the production of cruise ships
ships • Decline in demand for cruise ships due to external
• Increased importance of economic resilience and factors (pandemic disease, international confrontation,
economic security war, etc)
• Regulatory context impacting on raw materials’ costs

The Italian shipbuilding industry has a strong position in the global shipbuilding market with its construction
activity specializing in cruise and passenger ships. This is underpinned by a strong supply chain built up
with marine equipment manufacturers and local industry, and by the transferred high skills of the workforce
and management.
As a peninsular country, Italy is geographically well-positioned for shipbuilding and ship repair activities.
The maritime sector has contributed to the economy of not only Italy but also Europe and the world through
shipping, which has been an important means of transport and trade.
In addition, the IMO agreed in July 2023 that GHG emissions from international shipping should reach net
zero by around 2050. In response to the new target, the added value of decarbonization innovations and
the increasing new ship replacement demand will provide business opportunities for Italian shipyards.
Recent disruptions in global supply chains, caused by natural disasters, pandemics, geopolitical tensions
and coercion, have highlighted the importance of economic and supply chain resilience and security as
discussed in the G7 summit5. Italy's supply chain network can fully exploit its advantages in this context.
On the other hand, as discussed in 4.1.4, the “portfolio” of the Italian shipbuilding industry is heavily
dependent on cruise and passenger ships, and the construction of other ship types is extremely low
compared to these vessels. Therefore, if the demand for cruise and passenger shipbuilding falls due to
external factors, such as pandemic diseases, and geopolitical tensions, the Italian shipbuilding industry
would suffer.
In addition, the construction of cruise and passenger ships by other growing economies, could be a threat
to the Italian shipbuilding industry, considering that other potential competitor countries have good
opportunities for logistic expansion, which is a challenge for Italian shipyards.
In terms of shipbuilders, the large size and technological gap between large shipyards, vis-à-vis small and
medium-sized shipyards should also be noted. Diversification and technological cooperation can be
effective in facing this challenge.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  25

5. Policies affecting the shipbuilding and marine equipment industry

5.1. EU Regulatory measures

As a Member of the European Union (EU) since 1958, Italy abides by the common and general regulations,
policies, and strategies that are established under the functioning framework of the EU, and that fall within
its exclusive competence.

5.1.1 EU Treaty Provisions

In accordance with Article 3 of the Treaty on the Functioning of the European Union, and considering all
possible exceptions, the EU exercises exclusive competence in regulating a number of areas that are
relevant but not limited to industry such as (a) common commercial policy; (b) the establishing of the
competition rules necessary for the functioning of the internal markets; (c) customs tariffs and duties which
shall cover all trade in goods; (d) the conservation of marine biological resources under the common
fisheries policy, and (e) the exclusive competence for the conclusion of international agreements when its
conclusion may affect common rules or alter their scope, among others.
In what pertains to the areas that fall within the exclusive competence of the EU, Italy, as an EU Member
State, shall legislate or adopt legally binding acts only if so empowered by the EU or for the implementation
of EU acts. While the areas that refer to EU common and general regulations, policies, and strategies
interact with a broader range of industries, they influence Italian shipbuilding industry.
Subsection 2 of Article 2, and Articles 4 and 6 of the Treaty on the Functioning of the European Union,
confer a shared competence between the EU and Member States in certain areas where Member States
might be able to legislate or adopt legally binding acts to the extent that the EU would not or has not yet
exercised its competence, and also to coordinate, support or supplement regulations and policies that are
already in place.
Areas of shared competence between the EU and the Member States can cover, for instance, social and
employment policy, environmental and industry transition policy, internal market policy, consumer
protection policy, and transport policy, among other policy areas, including policies related to specific
common safety concerns on security issues and public health matters.

5.1.2. Membership to international organisations

Considering the above-mentioned, the Italian shipbuilding industry has been shaped around the EU
functioning framework. Furthermore, the sector has been influenced by Italian membership to International
Intergovernmental Organizations (IGOs) such as the World Trade Organization (WTO), where WTO
standards, agreements and global rules for international trade have been incorporated and enforced.
Beyond its impact in international trade, Italian membership to the WTO has extended its effects in Italian
social and labour standards. This, through the alignment of WTO Member States with international core
labour principles outlined by the International Labour Organization (ILO) on areas including freedom of
association and no discrimination at work. Moreover, Italy has adopted the Agreement of Government
Procurement (GPA) to regulate public procurement of good and services based on principles of
transparency, openness, and non-discrimination.
It is relevant to mention that, within the framework of the functioning of the EU, and in accordance with
what is stipulated in subsection 5 of Article 168 and subsection 4 of Article 2 of the Treaty on the
Functioning of the European Union, a number of temporary measures and incentives were deployed to
26  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

address the exceptional challenges pertaining the COVID-19 pandemic and Russia’s war of aggression
against Ukraine.

5.1.3. EU temporary measures and incentives

Some of the temporary measures and incentives put in place to tackle the challenges arising from the
COVID-19 pandemic and Russia’s war of aggression against Ukraine continue in effect and may impact,
among others, Italian shipbuilding industry.
For instance, strategies such as NextGenerationEU, operating through the Recovery and Resilience
Facility (RRF) and within the framework of the EU’s post-COVID-19 recovery plan, have set the ambitious
goal of making Europe climate-neutral by 2050 by, inter alia, investing in environmentally friendly
technologies, which is expected to push forward Italian shipbuilding industry transition toward
decarbonisation.
EU State Aid Temporary Framework has also given Italy a tool to support the economy in the face of the
above-mentioned crises by allowing the country to implement support measures that are not specifically
directed to the shipbuilding industry but applicable to various sectors. It is important to note that the EU
State Aid Temporary Framework expired in June 2022, except in the areas of investment and solvency
support, which remain in effect until December 2023.
As previously mentioned, the EU has established a set of common general regulations, policies, and
strategies that influence industry in general and that affect or are foreseen to affect the Italian shipbuilding
industry. Nonetheless, in addition to the common general regulation, the EU has also issued common
specific regulations that exclusively affect the Member States shipbuilding industry.

5.1.4. EU regulation on shipbuilding

The common specific regulation on shipbuilding that the EU has put in place and that affects EU Member
states including Italy is the following: i) EU Regulation 1257/2013 on ship recycling, which aims at
enhancing the protection of human health and the EU marine environment, particularly regarding the
proper management of hazardous materials on ships; ii) EU Regulation 2016/1013 on protection against
injurious pricing of vessels, which punishes shipbuilders engaged in unfair pricing; iii) EU Directive
2009/21/EC, which aims to enhance safety and prevent pollution from ships flying the flag of a Member
State; iv) EU Directive 2014/90/EU on Marine Equipment, which aims to increase marine safety and reduce
the risk of marine pollution, and v) the International Convention for the Safety of Life at the Sea (SOLAS),
which was ratified by all EU Member States.
Furthermore, as an EU member state, Italy is expected to implement EU regulations to encourage the
decarbonisation of maritime transport. Starting January 2024, the EU Emissions Trading System (EU ETS)
will include maritime CO2 emissions from all large ships entering EU ports, irrespective of their flag.
Additionally, the EU FuelEU Maritime regulation is set to be effective from January 2025.
It is important to mention that international maritime standards are developed by the International Maritime
Organization (IMO), a United Nations (UN) specialized agency responsible for providing the regulatory
framework for the shipbuilding industry.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  27

5.2 . National Support measures

5.2.1 Government Structure

The Ministry of Infrastructure and Transport oversees the shipbuilding sector, maritime transportation and
ports. It is managed by a Minister, two Deputy Ministers and one Undersecretary. It includes three
Departments:
• Department for strategic planning, infrastructural, network transport, information and statistical
systems6
• Department for sustainable mobility7
• Department for public works, housing and urban policies, water infrastructures and human and
instrumental resources8
The “General Directorate for the Supervision of the Port System Authorities, Maritime Transport and Inland
Waterways”, which is the unit that deals with the maritime sectors of the shipbuilding industry, waterways
management and the surveillance of the sixteen port authorities present along the Italian coasts, operates
within the Department for sustainable mobility.

5.2.2. Stakeholders

The maritime cluster involves several stakeholders which are presented in the Table 9.

Table 9. Relevant stakeholders of the maritime cluster in Italy

• Assonave
Enterprise associations Assonave represents the interests of the
• Confitarma shipbuilders. Assoarmatori and Confitarma
• Assoarmatori represent the interests of the shipowners’
• Assoporti category. Assoporti is the port authority
• Confindustria Nautica association.

Confindustria Nautica represents the interests

of the yachting industry

Trade Unions • FIOM-CGIL CGIL CISL and UIL are the 3 main
representatives of the numerous trade unions,
• FIM-CISL USB is a relatively recent organization. they are
federated with other working sectors and
• UILM represent the needs of workers in the cluster
but maintain links with other sectors of work.
• USB
They are entitled to stipulate national
employment contracts with the relevant
employer organisations, thanks to the elections
held every 3 years.

The national employment contracts, stipulated

between the employers' associations and the
trade union organizations, constitute the basic
legislation governing the employment
relationship at the national level.

Port Authorities 16 port authorities These Authorities manage the infrastructures,

along its 8300 km of coasts, related to shipping
or shipbuilding activities.
28  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

Local Public Administration 2 types of competent local authorities: Role in administrative policy, Environmental
Regions and Municipalities regulation, and surveillance. Under some of
those authorities fall some infrastructure
management like drydocks, wet docks,
slipways, and quays.

5.2.3. National support measures

In the twentieth century, during the 1980s and 1990s, the Government promulgated a number of specific
laws to intervene in the shipbuilding sector which were mainly oriented towards the restructuring of
shipyards and fleet modernization as “Disposizioni concernenti l'industria navalmeccanica ed armatoriale
e provvedimenti a favore della ricerca applicata al settore navale. (LEGGE 14 giugno 1989, n. 234)9.
Following the establishment of the European Union and the adoption of the euro, Italian legislation was
brought in line with European rules, notably state aid rules, which prevent market-distorting policy
interventions. The only policy measures that were allowed for specific thematic areas, were addressed to
all companies, and limited in time. Currently, the Italian government has not provided any support to
increase shipbuilding capacity even during the COVID-19 pandemic period.
The Italian government has been making an effort to improve transparency on government support. In
2017, Italy published legislation10, which requires all companies receiving “grants, subsidies, advantages,
contributions or aid, in cash or in-kind, which do not have any reciprocal, remunerative, or compensatory
nature” to publish the amounts they obtained from Italian authorities in the preceding year in the
supplementary notes of their financial statements and any consolidated financial statements 11. Publication
is mandatory, subject to penalties, if the total amount of the sums received, including from various public
entities, is equal to or greater than 10 k euros.12
Recently, public interventions benefited fleet renewal, in connection with the Italian government’s
“Complementary Funds”, providing support to shipowners for fleet renewal (or upgrade) in order to meet
higher ecological standards. These funds were however made available only to shipowners and no public
support measure was directly provided to the shipbuilding industry.
As regards the export credits, Italy has two Export Credit Agencies, SIMEST13 and SACE14. The volume
of the financial support is determined on a case-by-case basis in accordance with the Ship Sector
Understanding of the Arrangement.

5.3 . R&D and Innovations

The Ministerial decree n. 19615 of 10 June 2015, issued pursuant to the 2015 Stability Law, provided for
the possibility of financing innovative product and process projects in the maritime sector through the
allocation of a twenty-year contribution of EUR 5 million starting from 2015. The measure was in line with
the European Commission's General Exemption Regulation (EU) No. 651 of 2014 of 17 June 2014.
The beneficiaries of the subsidy are:
• shipbuilding, repairing and conversion shipyards, registered in the appropriate registers of
shipbuilding companies pursuant to art. 19 of Law no. 234/89,
• companies with registered offices or shipyards located in Italy at the time of disbursement of the
aid and,
• shipping companies pursuant to art. 265 of the Navigation Code
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  29

In the context of this measure (Stability Law 2015), in 2016, 15 naval projects were approved in favors of
8 shipbuilding companies for a total amount of EUR 100 million disbursed over a time window of
approximately twenty years (until 2034) as established by the law.
Fincantieri and Isotta Fraschini Motori are included among the 35 participating companies and will start
specific projects for developing endothermic engines and electricity-producing fuel-cells for naval use and
prototyping their use onboard passenger ships.
The CNR-INM institute (formally called Insean), a public research and development body belonging to the
“Consiglio Nazionale delle Ricerche” aims at the improvement of performance, safety, and security of the
different kinds of vessels. It is a very valuable support for the research and development of smaller yards,
besides the R&D of the major shipbuilding companies.

5.4 Decarbonization

The Green Shipping Ministerial Decree16 provides for loans of EUR 500 million in total, for the period 2021-
2026 to renovate or build commercial ships, excluding cruise ships, fishing boats, military vessels, leisure
boats and floating devices.
The measure obtained the approval of the Directorate General for Competition (DG COMP) in November
2022. 89 applications were submitted for fleet renewal and modernization interventions for a total of 22
companies’ beneficiaries were eligible for a total amount of 185 million euros.
The funding is not specifically directed to the shipbuilding industry. The objective of the investment is to
encourage the purchase of new ships or the modernization of existing (or under construction) fleets by
shipowners operating in Italian and European ports, in order to ensure better environmental performance
and a significant reduction in emissions polluting ships, even in ports, with interventions such as latest
generation propulsion systems, electric batteries, hybrid or hydrodynamically innovative solutions, digital
control systems or materials sustainability.
The funding aims to improve the sustainability of the shipping, by helping:
• adoption of fuels with zero greenhouse gas emissions,
• adoption of reduced GHG emission fuels, utilization of CO 2 capturing/storing and exhaust gas
scrubber devices,
• increase the onboard storage, production, and utilization of electricity for naval propulsion,
• energy saving application of new technologies to reduce the general energy consumption of the
ship,
• application aimed at energy recovery, wind energy utilization,
• application aimed to reduce sound pollution, etc.
The Italian support measure focuses on promoting technological improvement, including for
decarbonization in the maritime sector. Given the large number of cruise ship completions, the innovation
for the cruise ships is highly dependent on this county’s measures.

5.5 Social and labour policy

The DPCM 29 December 202217, entered into force on 13 January 2023, established the annual share of
non-EU citizens allowed to enter Italy with work permits. This share is quantified by the government,
according to the request coming from the various Italian economic sectors.
30  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

In 2023, the shipbuilding cluster proposed to receive a shared part of the total, but at this moment it is
impossible to establish how many non-EU workers will be employed in shipbuilding among the 30.105
granted permits which are intended for jobs such as truck drivers, building workers and agri-food chain
employees.
The procedure for working permits is based on the demand submitted in one “click day” organized by the
Interior Ministry18, in coordination with the Labor Ministry 19. For the administrative year 2022, the amount
of work permits granted to non-EU citizens, intended for the shipbuilding industry, represents 11% of the
total, amounting to 3.331 units.
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  31

6. Conclusion

The Italian shipbuilding industry has responded flexibly to and overcame the various challenges, as
described below:
In response to the decline in the Italian shipbuilding industry's market share due to the rise of East Asia
since the 20th century, it has specialized its main construction in cruise and passenger ships.
In response to the strong decline in 2014 and 2015, the country steered the shipbuilding industry towards
acquiring foreign demand.
During the Covid-19 pandemic, the shipbuilders managed to minimize cancellations and/or negotiated the
postponement of the construction of some of the new ships ordered, based on the strategic and operational
skills of its managers and its ability to interact with shipowners.
The largest player in the Italian shipbuilding industry is Fincantieri, which is one of the world’s leading
shipbuilders. It has also implemented partnerships with small and medium-sized shipbuilding enterprises,
which makes it a key player in driving the development of the Italian shipbuilding industry.
The Italian shipbuilding industry is characterized by the construction of very specialized types of vessels,
with certain shipyards taking the lead. The Italian government’s support measures could have a significant
impact on the shipbuilding market, particularly on the cruise ship market. The Italian government has
provided support to the shipbuilding industry based on WTO rules and EU regulations, and it intends to
implement minimal intervention in the market. It is expected to continue such efforts and the government
needs to fully take into account the impact on the market while developing support measures.
The majority of Fincantieri’s shares are held by a subsidiary of Cassa Depositi e Prestiti S.p.A., which is a
prominent public share Italian investment bank, and the governance has no direct links with the
government. The support measures for the shipbuilder are transparent under Italian regulations and it does
not benefit from any State economic interventions nor specific public financial support. However, the Italian
government needs to monitor the discussion on state-owned enterprises in the WTO closely and should
consider its support measures carefully.
32  PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY

References

Questionnaire, the Ministry of Infrastructure and Transport in Italy, unpublished information provided by
the Authority to the OECD Secretariat and discussions with government officials (2023)
OECD (2021), OECD Economic Surveys: Italy, https://www.oecd-ilibrary.org/economics/oecd-economic-
surveys-italy-2021_07d8b9cd-en
OECD (2023), OECD Economic Outlook, Volume 2023 Issue1, https://www.oecd-
ilibrary.org/economics/oecd-economic-outlook/volume-2023/issue-1_ce188438-en
OECD (2023), Government support in industrial sectors: A synthesis report, OECD Trade Policy Paper,
no.270, https://www.oecd-ilibrary.org/trade/government-support-in-industrial-sectors_1d28d299-
en;jsessionid=upNaRLVv384RRZ2LX39dmK2RzUg8hWDy9Kr_sEVS.ip-10-240-5-93
Clarkson Research Services Limited, World Fleet Register, https://www.clarksons.net/wfr
Fincantieri,1Q 2023 Results & 2023-2027 Strategic plan,
https://www.fincantieri.com/globalassets/investor-relations/presentations/results/2023/fincantieri-1q2023-
results_2023-2027_strategic-plan.pdf
I.stat, https://www.coeweb.istat.it/
Statista, Metals & Electronics Shipbuilding Cruise shipbuilding industry worldwide- statistics & facts,
https://www.statista.com/topics/6558/cruise-shipbuilding-industry-worldwide/#topicOverview
 PEER REVIEW OF THE ITALIAN SHIPBUILDING INDUSTRY  33

Endnotes

1 OECD(2023) OECD Economic outlook, Volume 2023 Issue 1

2KOTRA Overseas Market News Product & Industry,
https://dream.kotra.or.kr/kotranews/cms/news/actionKotraBoardDetail.do?SITE_NO=3&MENU_ID=180&CONTENTS_NO=1&bbsGbn=243&b
bsSn=243&pNttSn=177372
3 According to the Cruise Lines International Association (CLIA), the number of Mediterranean cruise tourists in 2018 totalled 4 million, an
increase of 8% year-on-year, and accounting for 14% of global cruise tourism.
4 Fincantieri Annual Report, 2022
5 G7 Leaders’ Statement on Economic Resilience and Economic Security (May 2020, 2023)
6 https://trasparenza.mit.gov.it/archivio13_strutture_0_14351.html per le opere pubbliche, le politiche abitative e urbane, le infrastrutture
idriche e le risorse umane e strumentali
7 https://trasparenza.mit.gov.it/archivio13_strutture_-1_14303.html
8 https://trasparenza.mit.gov.it/archivio13_strutture_-1_14294.html
9 https://www.gazzettaufficiale.it/eli/id/1989/06/21/089G0305/sg and subsequent amendments
10Article 1, paras 125 to 129 of Law No 124 of 2017 for market and competition (‘Legge annuale per il mercato e la concorrenza’) as modified
by the law-decree No 34/2019 (‘Decreto legge crescita’) and the law-decree No 34/2019 (‘Decreto riapertura’).
11Note that this covers the support received from Italian public administrations and other entities, such as corporate entities in public control.
Support having a general character is not subject to the disclosure requirement.
12 OECD(2023), Government support in industrial sectors: A synthesis report, OECD Trade Policy Paper, no.270
13 https://www.simest.it/
14 https://www.sace.it/
15https://trasparenza.mit.gov.it/moduli/downloadFile.php?file=oggetto_allegati/223101244370O__ODecreto_Ministeriale_numero_196_10-06-
2015.pdf
16 Green shipping Ministerial authorized by Law n. 101 of 01 July 2021, https://www.mit.gov.it/nfsmitgov/files/media/normativa/2021-
11/DD%20389.12-10-2021%20NAVI.pdf,
https://def.finanze.it/DocTribFrontend/getAttoNormativoDetail.do?ACTION=getSommario&id={3CA83BD4-5F90-427B-819A-A9839F574323},
https://www.gazzettaufficiale.it/eli/id/2021/07/06/21G00111/sg
17 DPCM 29 December 2022, so called “decreto flussi” established a quote of 30.105 extra EU citizen allowed to get a working permit. A
fraction of these will be employed by the Italian shipbuilding industry, https://www.interno.gov.it/it/notizie/pubblicato-gu-decreto-flussi-2022-
lingresso-lavoratori-non-comunitari
18 https://www.interno.gov.it/it/contatti/dipartimento-liberta-civili-e-limmigrazione
19 https://www.lavoro.gov.it/ministro-e-ministero/Il-ministero/Organizzazione/Pagine/DG-immigrazione-e-delle-politiche-di-integrazione.aspx