Page 49: of Maritime Reporter Magazine (February 1999)

MARITIME REVIEW

Norway: Consolidations Continue To Shape Market

By David Tinsley, technical editor

The conditional agreement whereby the Ulstein Group less its shipyard will become part of

Vickers, and the takeover of

Kvaerner Ships Equipment (KSE) by Hamworthy Marine's parent organization, signal the start of a new era for two leading Norwegian players in the maritime sector.

While its Swedish subsidiary has long been a driving force with- in the cargo access equipment mar- ket, KSE has pursued a policy of internationalization to the extent of having transferred its corporate headquarters from Norway to

Singapore in 1996.

Following December's $57 mil- lion purchase by the diversified,

U.K.-listed engineering and ports group Powell Duffryn, its future now lies in the newly-created,

British-based entity, Hamworthy

KSE.

Ulstein's business development has gathered momentum since flotation in October 1997, boosted by a succession of company pur- chases to strengthen and embellish a broad-based, international man- ufacturing operation, including an extended North American pres- ence. The $500 million acquisition by niche engineering specialist

Vickers will create a major new force in the global market, Vickers-

Ulstein Marine, to be run from

Ulsteinvik, the Norwegian compa- ny's west coast fountainhead.

Both pairings are characterized by a high degree of product and market complementarity, and both involve concerns which are suc- cessful in their own right, having demonstrated innovation as well as resilience in a fiercely competi- tive, international business sce- nario.

The KSE transaction is part of the Kvaerner Group's on-going shake-out of what it perceives as non-core activities. It is equally a testament to the will of Powell

Duffryn to expand within the marine market by building on

Ham worthy's operations, already much developed through selective company and technology purchas- es over the course of the 1990s.

The impending marriage of interests between Ulstein and

Vickers reflects strategic objectives of both parties. It is in line with the

U.K. firm's plan to gain leading market positions in niche engi- neering sectors offering growth potential, and allies with Ulstein's philosophy of extending the con- cept of system solutions.

Subject to the completion of due diligence procedures, bank finance, and approval by the relevant U.K.,

Norwegian and U.S. authorities,

Vickers-Ulstein Marine is expected to come into being by the spring at the latest. Ulstein chief executive

Bard Mikkelsen, who will head up the new force, is unequivocal about the prospective benefits of the link-up. "It represents a good industrial solution for the ship equipment producing companies," observed

Mikkelsen. "Our strategies can be carried forward and we will get a larger marketing and service orga- nization. Additionally, there are opportunities for synergy and tech- nical developments. For example, together with Kamewa, part of

Vickers' marine division, we can offer competitive, integrated propulsion solutions."

Ulstein's main strengths are in 46

Former ABB executive vice president

Kjell Almskog moved into his new office as Kvaerner's new president. In an effort to get the behemoth company back on the right track, he let it be known from the outset that there will be a stronger focus on technology. MHBHHHHHHHMHRflBHHHSHsffl&nBfflffin the fields of propulsion and maneuvering systems, transmis- sions, steering gear, deck machin- ery, high-performance rudders and medium-speed diesels. It includes brands such as Ulstein Propeller,

Brattvaag, Tenfjord, Frydenbo, and Ulstein Bergen, with Bird-

Johnson having added fixed pitch propellers and waterjets to the group's market reach last year, while Ulstein UT-series vessel designs are licensed to yards around the world.

To a high degree, its activities are complementary to those of the

U.K. group's Vickers Marine divi- sion, spanning the design and manufacture of propellers, thrusters, waterjets, winches, sta- bilizers, steering gear and hydro- dynamic bearings. Vickers encom- passes the Swedish-based Kamewa

Group, including the Aquamaster and Rauma brand names from

Finland, as well as Michell

Bearings and motion control spe- cialist Brown Brothers in Britain.

Both Ulstein and Vickers have interests in the turbine field, while

Kamewa's joint development of podded propulsion systems in con- junction with electrical engineer- ing specialist Cegelec gives further dimension to the projected new, combined company.

Meanwhile, the merger of KSE's liquid and dry cargo divisions with

Hamworthy Marine's three main manufacturing operations has cre-

Maritime Reporter/Engineering News

Ulstein Werft Invests In Productivity Enhancements

Norway's Ulstein Werft has recently embarked on a course of investment with an eye on productivity gains and a broadening of service offerings. A new partly covered *• ~ VMCTMP^^pj^^y^W^^^W^fc*^. ^ T^^Sca*""*^"" building dock and adjacent outfitting hall are the first phase ^^^^^ullj fc^SSBaa ' "^dBtftf i?' * ^^jUsS^^t^fc" rf m- in a development to facilitate improved production meth- ^^^^^^^^^H^^g^jV^^^glHHH^^Hp^K^-'1 ods. In all, $33 million was invested in the first phase of the JMy^^^^^H major shipyard redevelopment program. This will also ^^^M include a extension to the building dock at Ulstein Werft ^^^^H^^^^H^pCP** and the provision of weather protection over approximately half its length. In addition, two new integral outfitting bays will be provided, and crane capacity significantly increased. *~r .

The goal is to increase productivity and efficiency J %

The length of the dock is being extended from 623 ft. (190 m) to 741 ft. (226 m) and the width is being increased from 75.5 ft. (23 m) to 118.1 ft. (36 m). In the full yard development program, the outfitting hall will have five activity positions, but in this first phase only two will be completed. These will be located adjacent to the dock in a dedicated hall measuring 180 ft. (55 m) in length, 155 ft. (47.5 m) wide and 121 ft. (37 m) high. Painting has historically been a problem at the yard during the winter months. Such problems will be eliminated with the pro- posed investment in the dedicated painting shops. These will receive the steel units as they arrive at the yard. It is intended to fully paint hull sections before lifting them into the dock, including the first coating of antifouling.