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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 %