Page 50: of Maritime Reporter Magazine (October 1997)

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Astilleros Espanoles: Diversity,

History, Excellence

State-owned Astilleros Espanoles is a tradi- 52 tional leader among world shipbuilding in delivering a diversity of high quality vessels in an efficient manner.

However, pressures of the times, including the rampant, worldwide use of subsidies and shipbuilding overcapacity, due in part to emerg- ing countries' eagerness to build an industrial base, has been partially to blame for its losses in recent years. These problems, and the com- pany's short and long-term solutions, were the basis of a recent interview with chairman and

CEO Antonio Mendoza.

To even the most casual observer, it is painstakingly evident that the way business is conducted is changing rapidly around the world. Mergers and consolidations coupled with an explosion of new players in emerging markets have literally carved a new landscape on the business world. Europe is perhaps the best example of the changes at hand, as it moves forward with the European Union and ultimately the implementation of a common currency.

According to Mr. Mendoza, the Spanish gov- ernment will no longer cover losses at the ship- builder, due to the EU and its own changing policy. Thus the time for change is past, and the immediate term goal is to get all nine yards viable. He added that long-term prosperity for

Astilleros Espanoles lies in four basic princi- ples: •Labor: Improving efficiency and training; •New Products: Developing new, market-driven products; •Yard Improvements; and •Research & Development.

Subsidy Dilemma

As Mr. Mendoza points out, it is hoped that the canceling of all types of subsidies in the

European Union will be followed by ship- builders of all nations, creating the mythical "level playing field." However, much to the cha- grin of Astilleros Espanoles' leader, it "looks like OECD is dead, and we are now discussing what to do."

Politics aside, Mr. Mendoza and his executive staff intend to use every means at their disposal to fulfill the company's goal of "satis- fying clients and keep them coming back. We establish permanent clients and relationships."

Flexibility, Mr. Mendoza stress- es, is a cornerstone of achieving this goal on a daily basis. And own- ers shopping for ships at Astilleros

Espanoles are likely to find one of the more flexible builders in the world, in that it offers a large array of yards to efficiently handle most any order; it offers a wide variety of products, which it has built skillful- ly for generations; and it offers the ability to make design changes and alterations in the middle of the job, ensuring that the client gets what it needs.

As Mr. Mendoza points out, it can take from 18 to 24 months from initial discussions to finished prod- uct, and in that time a company, its personnel and its demands can change.

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