Aker integration process progressing

Aker Yards has announced its new business model for its shipyards in business area Cruise & Ferries. The new business model, presented to the management and employee representatives, is the result of a 100 days integration process in which 12 task forces in France and Finland have analysed the two ways of doing shipbuilding. Best practices, efficient organisations and fixed costs were reviewed and compared. This process resulted in about 150 initiatives to be implemented over the next three years worth in the magnitude of 100 million Euros in savings, among which some 40 million for Finland.

The five main initiatives are the focus on core competencies, improvement in sourcing through bigger volume, development of turnkey supplies, independence of sharable competencies and simplification / adaptation of the organisation to the new business model.

The improvement initiatives will be followed up under the development programme “1+1=3”, which will be based on the ongoing French Marine 2010 programme.

The present orderbook of Cruise & Ferries business area consists of 18 ships, for a value of EUR 5.5 billion. The world?s three largest cruise vessels for Royal Caribbean, a cruise vessel and two fast day ferries for Color Line, a cruise ferry and a fast passenger ferry for Tallink, a ropax and a passenger ferry for Brittany Ferries and a fast passenger/car ferry for Viking will keep the shipyards in Finland very busy the next three years.

These initiatives together with the record high order book will create some 260 new jobs at Aker Yards in Finland, which are expected to be secured during 2007.

In France, due to the adjusted business model and the increasing work load, it is estimated that some 2,000 new jobs will be created in the maritime cluster in the Saint Nazaire area. Out of these 2,000 new jobs 640 will be created at the shipyard itself, mainly for outfitting coordination and steel production positions. The company looks forward to work with the local region and community to stimulate the development of these new jobs.

The new business model also translates into some organizational changes in France, for which a dialog with the employee?s representatives has been started. Such discussions are expected to continue until the beginning of January 2007. It is estimated that some 240 employees (mainly white collars) will need to change jobs within the next three years and Aker Yards will provide training and support to those affected.