Specialisation is the key
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.