Specialisation is the key

Importer

De

s

pite orderbook

s

barely extending pa

s

t mid-1999

and

the

s

trong pound, the UK`

s

remaining commercial

s

hipbuilder

s

believe they can continue to compete.

The

s

trength of

s

terling i

s

making competition between UK yard

s

and

other

s

in northern Europe harder,

and

there i

s

no doubt that thi

s

i

s

having an impact on yard

s

` abilitie

s

to win order

s

.

They are continuing to concentrate on

s

peciali

s

ed, high added-value tonnage, with a high engineering content, to avoid lower co

s

t competition from over

s

ea

s

on

s

impler

s

hip

s

. “The UK can compete on the more complex tonnage, but it i

s

increa

s

ingly difficult on

s

imple tonnage,” feel

s

Fergu

s

on

S

hipbuilder

s

` Ken Fulford. “If it i

s

s

imple, the owner can find cheaper place

s

to build.” Of the three main yard

s

, Appledore ha

s

been the mo

s

t involved in building

s

impler ve

s

s

el

s

along

s

ide it

s

high-value tonnage in the la

s

t few year

s

, with deliverie

s

including coa

s

ter

s

and

s

mall product tanker

s

and

bulk carrier

s

. “We will

s

upply whatever the market want

s

,”

s

ay

s

managing director Jim Wil

s

on.

To

s

ay that the Briti

s

h government ha

s

done little to help

s

hipbuilding in recent year

s

would be an under

s

tatement, though the new Labour admini

s

tration i

s

now talking of

s

upporting the indu

s

try. Mo

s

t are under

s

t

and

ably

s

ceptical, but a new

S

hipbuilding Forum ha

s

been e

s

tabli

s

hed,

and

it will be intere

s

ting to

s

ee if anything po

s

itive emerge

s

. Meanwhile, the

s

t

and

ard 4.5 per cent/9 per cent intervention

s

cheme i

s

the limit of

s

upport. Regional aid could be available under EU rule

s

, but Appledore`

s

Mr Wil

s

on

s

tate

s

: “We have not had one penny from government

s

ource

s

except from the intervention fund.”

Kvaerner Govan Order

s

at Kvaerner Govan are dominated by off

s

hore related tonnage. Two

s

upply boat

s

for Far

s

tad will be delivered in January

and

March 1999,

and

a highly

s

ophi

s

ticated oil well te

s

t ve

s

s

el for Brovig take

s

the yard through to July next year. Thi

s

i

s

the extent of the orderbook,

s

o it need

s

to

s

ecure contract

s

by the end of the year to en

s

ure continuity on

s

teel production,

and

i

s

optimi

s

tic that order

s

are forthcoming.

It i

s

continuing to look to niche market

s

,

s

uch a

s

chemical carrier

s

and

s

upply boat

s

. The yard i

s

competitive in the value added,

s

peciali

s

t market

s

, Anti Pankako

s

ki, vice pre

s

ident of Kvaerner

S

hipbuilding, explain

s

. “Thi

s

ha

s

been the plan for a number of year

s

,

and

there i

s

no rea

s

on to change it.” While

s

upply ve

s

s

el

s

may look

s

mall for a

s

ite with 205m panamax beam building berth

s

, they are perfectly

s

uited to the facility,

s

ay

s

Mr Pankako

s

ki. It i

s

al

s

o bidding on a number of Briti

s

h government project

s

.

Govan i

s

benchmarked again

s

t other yard

s

in the Kvaerner group

and

ha

s

been underperforming,

s

o a new

s

trategy wa

s

implemented to rever

s

e lo

s

s

e

s

and

improve profitability. Production philo

s

ophy ha

s

changed completely, with the yard concentrating on the core di

s

cipline

s

of

s

teel

and

pipe work. Engineering ha

s

al

s

o been kept in-hou

s

e, with 60 engineer

s

employed.

S

teel capacity run

s

at 20,000t/yr. “The more

s

teel we do in-hou

s

e, the more competitive we are,” explain

s

marketing manager

S

am Cameron.

Many other non-core di

s

cipline

s

are now out

s

ourced, in particular where the yard

s

ee

s

element

s

of ri

s

k. Thi

s

policy ha

s

led to a

s

ignificant reduction in workforce, which i

s

down to below 900 from more than 1500 ju

s

t over a year ago. There have al

s

o been management change

s

. The yard i

s

now applying be

s

t practi

s

e, ba

s

ed on group experience, explain

s

Mr Pankako

s

ki. “Efficiency i

s

on a completely different level when compared to two or three year

s

ago.” A £7 million ($11.4 million) inve

s

tment programme i

s

underway, aimed mainly at improving efficiency in Foran 3D CAD

s

y

s

tem.

Govan ha

s

delivered three

s

hip

s

thi

s

year; the 36,800 dwt chemical tanker

Jo Cypre

s

s

to JO Tanker

s

,

and

two type V

S

483

s

upply ve

s

s

el

s

to Toi

s

a; the 82.85 loa x 19m x 7.6m

Toi

s

a Intrepid

and

Toi

s

a Invincible

. Propul

s

ion on the

s

e

s

hip

s

i

s

provided by two 2,460kW (3,300 bhp) W<#138>rt

s

il<#138> 6R32E main engine

s

each driving a 1,750kW

s

haft generator

and

CP propeller, giving a

s

ervice

s

peed of 12 knot

s

. They are equipped with a

S

imrad DP

s

y

s

tem

and

twin 735kW (1,000 bhp) VP thru

s

ter

s

fore

and

aft. Toi

s

a`

s

manager

S

ealion

S

hipping modified the de

s

ign to provide accommodation for up to 25 per

s

onnel,

and

ha

s

prepared the ve

s

s

el

s

for additional DP equipment for capability in exce

s

s

of pure

s

upply

s

hip operation

s

. The contract wa

s

worth approximately £27 million to the yard. The two Far

s

tad

s

hip

s

are being built to the V

S

420 de

s

ign with

s

imilar dimen

s

ion

s

. Contract value i

s

s

ome £14 million ($22.8 million) per

s

hip.

Appledore

S

hipbuilder

s

ha

s

delivered two

s

hip

s

thi

s

year,

and

ha

s

three on order. Toi

s

a will take delivery of two 72m x 16m x 6m 3,150dwt ROV

s

upport/

s

upply ve

s

s

el

s

in February

and

April next year,

and

a fi

s

hery patrol ve

s

s

el will be completed for the Iri

s

h navy in

S

eptember next year. There i

s

an option for a

s

econd fi

s

hery patrol ve

s

s

el,

and

the yard i

s

working on two or three

s

olid enquirie

s

, according to Mr Wil

s

on, who i

s

equally optimi

s

tic about winning contract

s

and

maintaining continuity. “We can compete, but the pound i

s

hurting u

s

,

and

intere

s

t rate

s

are too high,” he

s

ay

s

.

Appledore delivered the twin

s

crew pa

s

s

enger ferry

Clan

s

man

to Caledonian MacBrayne in the

s

ummer. The 5,400g ferry mea

s

ure

s

99m loa x 15.8m x 5.5m

and

i

s

equipped with twin MaK 8M32 main engine

s

each developing 3,840kW (5,1590 bhp).

S

peed at 85 per cent MCR i

s

16.5 knot

s

. The ve

s

s

el i

s

arranged for

s

tern

and

bow loading with a

s

emi-enclo

s

ed vehicle deck,

and

ha

s

capacity for 90 car

s

, or up to ten HGV

s

on the main deck,

and

ten car

s

on a hoi

s

table car deck. Pa

s

s

enger capacity i

s

634. The double hulled 6,250 dwt product carrier,

Le

s

ley PG

, wa

s

delivered to Campbell Maritime in January.

When Langham Indu

s

trie

s

took Appledore over in 1989, it had a turnover of £12 million ($19.6 million)

and

wa

s

lo

s

ing £6 million ($9.8 million) annually. Today, turnover i

s

around £40 million ($65.6 million). Mr Wil

s

on i

s

s

trongly committed to creating employment,

and

the yard trie

s

to do everything in-hou

s

e, including all de

s

ign work; the Toi

s

a boat

s

have been de

s

igned at Appledore, for example.

S

teel capacity i

s

150 t/week,

and

the workforce

s

t

and

s

at around 500 people. 13 apprentice

s

are taken on each year. Recent inve

s

tment include

s

extending the cutting

s

hed

and

refurbi

s

hing a 75m

s

lipway, which ha

s

been u

s

ed to con

s

truct

s

ection

s

,

and

for repair.

Port Gla

s

gow`

s

Fergu

s

on

S

hipbuilder

s

delivered the platform

s

upply ve

s

s

el

S

tirling Tay

at the end of June,

and

i

s

s

cheduled to h

and

over a final

s

i

s

ter

s

hip to

S

tirling

S

hipping in February. At the time of writing thi

s

wa

s

the

s

ole ve

s

s

el on the yard`

s

book

s

.

S

tirling ordered four

s

imilar ve

s

s

el

s

in an inve

s

tment worth approximately £55 million ($90.1 million); three at Fergu

s

on

and

one at Kvaerner Govan. The

s

e ve

s

s

el

s

are al

s

o ba

s

ed on the V

S

483 de

s

ign from Vik

and

S

and

vik, but have an azimuthing thru

s

ter forward in place of one of the tunnel thru

s

ter

s

.

With

s

uch a thin forward order

s

ituation the yard i

s

obviou

s

ly looking hard for new order

s

,

and

Fergu

s

on`

s

Ken Fulford explain

s

that they have good pro

s

pect

s

for new contract

s

. “We expect another job

s

oon,” he

s

ay

s

. But he al

s

o comment

s

that the market i

s

quiet, with fewer enquirie

s

than in recent year

s

,

and

a definite tendency for project

s

to be delayed.

Fergu

s

on i

s

limited to building

s

hip

s

of 100m in length,

and

like the other

s

ha

s

focu

s

ed on more complex

s

hip

s

with a high engineering content. The off

s

hore market ha

s

been mo

s

t fruitful recently, but it i

s

al

s

o keeping an eye on other

s

ector

s

, notably the ferry market, where it

s

ee

s

good pro

s

pect

s

. The Briti

s

h government announced that

S

cotti

s

h i

s

l

and

ferry operator Caledonian MacBrayne ha

s

been allocated budget for further newbuilding, for example,

and

Fergu

s

on ha

s

built for the company before.

It al

s

o ha

s

hope

s

for the dredger market in the medium term. The yard ha

s

a long hi

s

tory of building dredger tonnage, though it ha

s

only delivered one in the la

s

t ten year

s

. “Dredger

s

have the high engineering content that

s

uit

s

the balance of people in the yard now,” Mr Fulford explain

s

. “We are not fully competitive without a good level of engineering.” Thi

s

mean

s

that the general coa

s

ter market i

s

generally out of the yard`

s

s

cope, unle

s

s

there i

s

s

omething particularly unu

s

ual or complex in the de

s

ign.

Fergu

s

on employ

s

a

s

taff of around 350, of which

s

ome two third

s

are permanent. It doe

s

it

s

own

s

teel work,

and

ha

s

not been tempted to build hull

s

at cheaper over

s

ea

s

location

s

, unlike many of it

s

competitor

s

in The Netherl

and

s

and

Norway. Fergu

s

on i

s

not convinced that building hull

s

over

s

ea

s

actually produce

s

the

s

aving

s

they

s

eem to promi

s

e.