Page 42: of Maritime Reporter Magazine (January 2001)

The responsibility of melding, developing and profitably leading one of the world's most prolific high-technology marine companies is, to say the least, a daunting task. Assuming the post with no marine industry experience would seemingly make the job all the more difficult. But Dr.

Saul Lanyado (pictured right) enters his position as the new president of the Rolls-Royce Marine division armed with years of engineering and business success and savvy. Maritime Reporter recently sat with

Dr. Lanyado in his Buckingham Gate, London office to discuss the com- pany's current endeavors and future developments. — by Greg Trauthwein, editorial director

At the outset of a discussion regarding Rolls-Royce's marine business, it is immediately evident the direction in which one of the world's new leading players in marine propulsion is heading. Rolls-Royce, which arguably possesses one of the world's brand names most closely linked to superior quality, will heretofore be regarded as a high technology company. While the company is well regarded for its engineering and man- ufacturing prowess, and has effectively assembled a wide range of brand name marine propulsion, deck machinery and ship design products and companies, the future lies in its ability to develop and/or acquire more advanced, integrated ship systems for both the naval and commercial markets.

Yes, acquire.

While Dr. Lanyado was, naturally, not at liberty to tip his hand on imminent deals or interesting prospects, he admitted that Rolls-Royce may not be finished in terms of acquisitions, and he views prudent investment — either internal or external — as an expansion of the company's capabilities. "There are a number of compa- nies, both large and small, that appear attractive," he said. "As a group, we are constantly looking for afford- able opportunities." Noting that the mechanical side is just one aspect of today's complex, integrated ship power system, he said that acquisition or partner com- panies of particular interest: the "new" areas of propul- sion, Electric and Electronic, or motors that are not dependent on mechanical linkages.

Regardless of future prospects, Rolls-Royce's man- agement task at hand from its London headquarters, in the near term, remains a formidable one, that being the seamless integration of the company's current divi- sions. Best known, perhaps in the marine realm, for its gas turbine technology, Rolls-Royce is in reality a con- glomeration of some of the biggest names in marine products, including Ulstein, Kamewa, Brown Brothers and Michell Bearings.

To put Rolls-Royce's marine business in a financial perspective, the corporation generates approximately 6 billion pounds ($8.8 billion) annually, of which 1 bil- lion pounds ($1.4 billion) is marine business, or about 15 percent of the company turnover. Current estimates from the company places the overall value of the marine market at about 40 to 50 billion pounds ($58.9 to $73.6 billion) annually, with approximately 4 to 5 billion pounds ($5.8 billion to $7.3 billion) spent in "our sector," giving Rolls-Royce an approximate 20 percent plus market share. Dr. Lanyado's aim is to increase this percentage significantly, effectively mak- ing it the dominant player in the market.

The company offers a vast array of marine products and services for both military and commercial applica- tions, serving vessels both large and small, ranging from ship design, ship equipment and integrated sys- tems solutions. These individual brands, not too long ago, were independent companies with strong alle- giance from both employees and customers alike. The challenge: maintaining the local company strengths (the point of the acquisition in the first place) by effec- tively managing an array of cultures, products and managements systems while assimilating the Rolls-

Royce philosophy and strengths throughout the sys- tem.

Rolls-Royce is now positioned as a singled source integrated system supplier for tugs, workboats and coastal ferries. 42 www.maritimetoday.com Maritime Reporter & Engineering News