The countries of the AA represent about 50% of the added value generated in the shipbuilding industry in the EU, demonstrating the importance of the industry for this geographical area. The fundamental problem for European shipbuilding, particularly in the Atlantic coast countries, is how to compete successfully in the global market with the shipyards of the Far East.With the in-built downward trend for prices in the global market and the increased costs of being located in the Euro area, specific measures are needed if European shipyards are to become more competitive. EU policy and administrative action ensure that these measures respect the domestic market, while improving productivity in production processes, reducing fixed costs, developing new high technology production processes with the necessary patent protection, defining more appropriate financing instruments in partnership with financial institutions and promoting the creation of a new policy of aid from the EU to companies committed to innovation, and technological and organisational excellence.The main objective of the AUXNAVALIA project is to create coordination structures to promote R&D in the shipbuilding ancillary industry and motivate cooperation and the transfer of innovative technology. The transnational dimension of the project is essential to gain scale and increase the synergies required to make this sector more competitive, increase ist capacity and, consequently, make it more active in accessing European development and innovation programmes. Achievements: Promoting the reorganisation of the shipbuilding ancillary companies The Aux-Navalia Project has presented a report on the available concentration possibilities for SMEs of the shipbuilding ancillary industry as a route to improve their competitiveness. The report is based on a previous analysis and subsequent discussions with a good number of companies of the sector. It focuses on the design and enhancement of projects that promote business concentrations between the companies of the naval ancillary sector, by evaluating the suitability of existing methods, such as alliances and strategic agreements on a long-term basis, joint ventures (temporary consortiums, collaborations,..), acquisitions, fusions, creation of joint structures for the acquisition of resources, creation of new business associa tions or clusters of main geographic field, etc.This way, the aim is to provide the ancillary shipbuilding sector with reliable information on the advantages that concentration processes involve and how they can contribute to economies of scale that will allow them to reduce costs and or improve innovation capacities or access new markets. In addition, it offers a map of possible collaboration alternatives, highlighting the advantages and disadvantages of every existing method. Likewise, it analyses the impact of the different methods in each area of activity in a company: commercialisation, production, internationalisation, promotion of personnel, etc. Finally, it also presents different concentration showcases in the sector, with its aims and respective results, as well as their impact in the companies. For further information on this and other Auxnavalia activities, please visit www.auxnavalia.org