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October, 1996 103 December 31, 1996. The union of these two shipping powerhouses will create a consoli- dated fleet, and will enable greater container volumes to be handled at lower costs. For exam- ple, from a total cost base of $3.9 million, savings in excess of $200 million have already been identi- fied, primarily through a 15 per- cent reduction in the combined workforce. Other cost savings will come from greater network efficiency, improved IT systems and more efficient box utilization. P&O Containers is the sixth largest container line in the world in terms of standing slots on fully containerized ships, operating 52 ships, with a capacity of 110,016 TEU. Nedlloyd Lines operates 60 owned and chartered container- ships, totaling 240,000 TEU. P&O and Nedlloyd's throughputs for 1995 were 1,259,000 and 978,000 TEU, respectively. A Concentration Of Power By forging new alliances, the propulsion segment has also gener- ated more than its fair share of news lately. In early July, Caterpillar announced an intended takeover of Germany's Krupp MaK. More recently, the parent companies of Wartsila Diesel (Metra) and New Sulzer Diesel and Grand Motori (Fincantieri) announced the inten- tion to merge. Metra Corp. and Fincantieri Navali Italiani S.p.A. have tenta- tively agreed on joining the opera- tions of Metra-owned Wartsila Diesel and Fincantieri-owned New Sulzer Diesel and Diesel Ricerche, as well as Fincantieri's diesel engine division Grandi Motori. The new company would be the largest in the field. The finaliza- tion of the agreement is expected by the end of 1996, as it is subject to the approval of relevent compet- itive authorities. "With the globalization of busi- ness, we're going to see more merg- ers. There is a trend towards fewer, but larger companies," said Metra Corp. President and CEO Georg Ehrnroot, at the recent SMM exhibition. Also at SMM, Peter Sulzer of New Sulzer Diesel, stated, "I'm convinced the merger will help stabilize the mar- ket. There is a consolidation in the market. We are creating bigger, stronger and more reliable play- ers." New Sulzer manufactures slow and medium-speed diesel engines, and has been owned jointly by Fincantieri and Germany's Vulkan Instrie Holding (VIH) GmbH. The majority of Sulzer engines are manufactured by licensees in major shipbuilding countries. In 1995, the group had net sales of $570 million, with an operating profit of $3.3 million. Wartsila Diesel, Metra's largest division, had net sales of $1.5 bil- lion in 1995 and an operating prof- it of $89 million, contributing to the parent's net sales of $2.3 bil- lion. Fincantieri's Grand Motori, with 1995 net sales of $285 million, manufactures medium speed GMT engines and diesels under New Sulzer license. Diesel Ricerche S.p.A. does R&D for New Sulzer and Grand Motori. WHILE THIS MAY APPEAR TO BE A SIDE BY SIDE COMPARISON, WE ASSURE YOU THERE ISN'T ANY. To the right of that familiar tim- ber pile is the first genuine innovation in piling construction in decades: the SEAPILE®Composite Marine Piling. Whether it is used for fender piling or light structural pile, SEAPILE provides a durable, environmentally friendly alternative to creosoted or chemically treated timber. SEAPILE is made from Duralin® plastic, a matrix of 100% recycled resin that bonds with the pile's fiber- glass reinforcing elements. Impervious to marine borers, SEAPILE is also resis- tant to ultraviolet light, chipping and spalling. It is currently available in 10", 13" and 16" diameter, with pile lengths of up to 90 feet. The SEAPILE drives like a wood pile with the same machinery. So make sure your next piling purchase is truly beyond compare. Choose SEAPILE Composite Marine Piling from SEAWARD International. Structures, ships, environments, bud- gets. We protect it all. SEAWARD INTERNATIONAL, INC. 3470 Martinsburg Pike, P.O. Box 98 Clearbrook, VA 22624-0098, USA 1-800-828-5360 (540)667-5191 Fax: (540)667-7987 Circle 289 on Reader Service Card
