Europe's Limitations

ABU DHABI/BERLIN (Own report) - The German ThyssenKrupp Corporation is cooperating in the production of warships with the Abu Dhabi state enterprise and has buried plans for a common European shipbuilding company. ThyssenKrupp announced it would renounce on civilian ship production to concentrate its dockyards solely on arms production. It is entering a "strategic partnership" with the Abu Dhabi Mar Co. from the United Arab Emirates (UAE). Their deal seals the military alliance between Germany and the Emirates, possibly creating the opportunity for circumventing German arms exports regulations and ending efforts aimed at forging a German/French ship production - under German leadership. Paris successfully repudiated German hegemony in warship production and therefore will now be confronted with the fait accompli. If a German dominated "European solution" cannot be accomplished, Berlin will do without "Europe" and go it alone.

Concentration on Essentials

Over the past few years the ThyssenKrupp Steel and Industry Corp. has consolidated various German dockyards into a shipbuilding consortium, covering a wide ranging spectrum of civilian and military production sites. The three German traditional dockyards: Blohm + Voss in Hamburg, the Howaldtswerker Deutsche Werft AG (HDW) in Kiel and the Nordseewerke (NSWE) in Emden, are the main pillars of this ThyssenKrupp Marine Systems (TKMS) consortium founded in 2004. In addition there were the Kockums Dockyards in Sweden and the Hellenic Shipyards in Greece. At the moment, the mother company is seriously suffering under the consequences of the economic crisis. ThyssenKrupp's last fiscal year ended with a two billion Euro deficit. The crisis has also affected civilian shipbuilding. Shipyards around the world are suffering from fewer orders as well as more cancelations. This is why ThyssenKrupp has changed strategy, pulling out of building commercial vessels and fully concentrating on building warships.

Strategic Partner

The German company is dropping the Greek Hellenic Shipyards, the largest shipyard in the eastern Mediterranean. Work has largely been shut down and the 1,300 employees will receive their last pay checks at the end of this month.[1] A few weeks ago ThyssenKrupp sold the majority of the shares of the NSWE in Emden to Siag Schaaf, the wind energy plant constructor. The NSWE had been building both commercial and military ships. ThyssenKrupp seeks now to combine the military technology in Kiel and in Hamburg, and is therefore cooperating with its new partner, the majority state-owned Abu Dhabi Mar consortium in the United Arab Emirates (UAE). Both have signed a statement of intentions on this "strategic partnership."[2]

Arms Markets

The Arab ship construction enterprise will buy 80% of the Blohm + Voss Shipyard in Hamburg. A joint enterprise will be created in the military sector for the construction of frigates, corvettes and patrol boats with 50-50 shares for both TyssenKrupp and Abu Dhabi Mar.[3] Excluded from this merger is submarine construction, which, with its highly sensitive military technology, will remain in the hands of the ThyssenKrupp mother company. The partners want to share the market for military technology. While ThyssenKrupp continues to deal with the NATO countries, Abu Dhabi Mar will seek arms contracts in conflict areas along the Persian Gulf and North Africa. This will possibly circumvent German arms exports regulations. Orders from Southern and Eastern Asia, Sub-Saharan Africa and Latin American will be divided between the two partners.

Close Ties

Abu Dhabi Mar, founded in 2008, is the property of Sheikh Hamdan bin Zayed Al Nahyan, a member of Abu Dhabi's ruling family. Sheikh Hamdan is currently vice prime minister of the UAE and for years has had close ties to Germany. He shares with former Chancellor Gerhard Schroeder the chairmanship of the German-Emirati Friendship Society. German President Horst Koehler honored him with Germany's Federal Cross of Merit.[4] The military and arms business cooperation between Germany and the UAE was initiated back in the 90s and institutionalized in 2005 with an "Agreement of Cooperation in the Military Field". (german-foreign-policy.com reported.[5]) The political ties between Berlin and the Arab feudal states are also being consolidated by the Gulf states' investments in the German economy.[6] Most recently, with a large financial transfusion, the Emirate of Qatar bought into Volkswagen, while the Aabar Investment Society of Abu Dhabi bought into the Daimler car producer. Just last June, ThyssenKrupp's partner, the Abu Dhabi mar Consortium, bought majority shares in the Nobiskrug Shipyard, which specializes in luxury ships, in Rendsburg, Germany.[7]

Totally Un-European

Abu Dhabi's joining the German maritime shipbuilding industry, signals Berlin's fundamental change of strategy in its long-term efforts to help bring the German arms industry to a position of predominance in Europe. The aspired concentration of the European maritime shipyards under German leadership has so far been thwarted by France's opposition, which also seeks a predominating position in the production of warships. It was a pat situation in the German-French tug of war.[8] ThyssenKrupp has now turned to the UAE, just as Siemens recently terminated its nuclear cooperation with France, because Paris refused to give in to German demands for more influence in the nuclear sector, and began cooperation with Russia. According to the daily, Frankfurter Allgemine Zeitung, this means that the project of a common European maritime shipbuilding industry is "as dead as a doornail".[9] As a matter of fact, the arms cooperation with the Gulf state was already cleared with the representatives of the Berlin government: "We have sounded out all of the ministries and received a very positive prevailing sentiment," TyssenKrupp declared.[10] Cooperation with the emirates, is "far more sustainable than a European maritime company" according to the German press, which usually never tires of praising "Europe" and "European solutions" - of course, only when German predominance in the "European" project can be assured.[11]

[1] Thyssen lässt griechische Werft fallen; Handelsblatt 20.10.2009
[2] ThyssenKrupp und Abu Dhabi bauen zusammen Schiffe; dpa 15.10.2009
[3] Thyssen-Krupp baut mit Arabern Kriegsschiffe; Handelsblatt 15.10.2009
[4] Hamdan bin Sajid al Nahjan - Ein Scheich für Hamburg; www.ftd.de 15.10.2009
[5] see also Deutsche Tradition, Gulf State Military Partner and Partner in Occupation
[6] see also Feudalinvestoren, Feudalinvestoren (II) and Feudal Investors (III)
[7] Araber bauen Macht in Deutschland aus; Financial Times Deutschland 16.10.2009
[8] see also "Neuordnung der europäischen Werftenbranche", "Stärkere nationale Stellung", Kampfansage, Größeres Selbstbewusstsein and Parallel
[9] Ade, Marine; Frankfurter Allgemeine Zeitung 16.10.2009
[10] Werften: Thyssen wirft Ballast über Bord; Handelsblatt 15.10.2009
[11] Ade, Marine; Frankfurter Allgemeine Zeitung 16.10.2009


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