Page 8: of Maritime Reporter Magazine (June 15, 2000)

Investment in Design

A Quality Blend CESS E5331.

A recent clutch of 'Rolls-Royce' ship- board equipment and technology con- tracts in Norway arising out of special- ized, capital-intensive newbuild projects testified to the U.K. group's march into the commercial marine domain.

For sure, the emergence of the engi- neering group's name in new mercantile circles is the outcome of last year's acquisition of Vickers. and its Vickers-

Ulstein Marine division, rather than the result of U.K. home-grown product diversification. But the new proprietor of the former Ulstein and Vickers' inter- ests intends to build on the platform and integrated system opportunities offered by ownership of the industry's most extensive global network of marine equipment production.

Just as the takeover signaled Rolls-

Royce's determination to enlarge its marine power business, the readiness of the absorbed companies to use the

Rolls-Royce brand identity says some- thing about the latter's standing in its established areas, especially the civil

Rolls-Royce aerospace and military markets.

The various Ulstein and Vickers group businesses in propulsion systems, pro- pellers, thrusters, waterjets. pods, steer- ing gear, motion control equipment, deck equipment, control systems and marine design have been brought into the fold to complement Rolls-Royce's existing gas turbine and diesel power activities. As a consequence of the $848 million purchase, spurred mainly by the prospect of sustained growth in the marine business, the organization claims to be the largest supplier in its field.

Bob Sunerton, managing director of marine business at Rolls-Royce, said "The acquisition of Vickers will enable us to meet customers' changing require- ments, offer a broader product range, and supply a fully integrated power sys- tems capability." The company will address what it quantifies as a marine market worth $60 billion over the next 20 years, with the next five years expected to account for $25.5 billion of that. It reckons on marine market growth of four percent per annum, with power systems accounting for 15 per- cent of the market value. "As the trend towards fast ships and special applica- tions determines high technology equip- ment, the proportion of value attribut- able to the power system will grow — over a number of commercial market sectors," said Sunerton.

Besides the all-important naval busi- ness. Rolls-Royce is focusing on higher- value vessels for its drive in the com- mercial field. The accent is on offshore support and service vessels, cruise ships and ferries, and other specialized ton- nage. In addition to a generic-type con- centration. the focus will also be on sys- tem or 'package' solutions. "A market driven approach also benefits ship oper- ators by offering dedicated solutions for integrated system packages and through-life product support," con- firmed Sunerton. who also underscored the group's intention to continue to seek ways in which to develop its integration capabilities. by David Tinsley, technical editor

Bob Sunerton, MD Ro Is-Royce, (center), flanked by David Pric«! (left), who heads up the Naval business, and Morten Ulstein (right), who is in chargc of the company's commercial businesses.

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