”Investing for future competitiveness” Kleven Maritime – a Norwegian case

Kjersti Kleven, Chairman of the Board Norwegian Shipbuilding 2012

Total number of Offshore Total value vessels Vessels bill NOK

Deliveries 2012 56 38 17.9 For delivery 2013 54 28 16,0 For delivery 2014 31 19 13,8 Options 2013 - 2015 17 12 6.3

Signed 2012 55 31 18.3 Moere Maritime Cluster

Equipment Shipowners Design and Shipyards Total suppliers Engeneering Companies 165 19 15 14 213 Turnover 19 027 13 499 1 041 13 091 46 658 (mill NOK) Earnings 1 731 1 891 181 1 169 4 972 (mill NOK) 7,2 % 14,0 % 17,4 % 8,9 % 9,6 % Employees 8 377 7 288 492 3 995 20 092

In addition the region has a seagoing fishingfleet of 81 vessels. Fosnavåg Offshore Shipowners Fishing fleet miljøsenter

Ulstein Group Rolls-Royce

ABB, DNV, m.fl.

Kleven Maritime Island Offshore Kleven Verft

Hareid Jets © Maritim forening søre sunnmøre - Libra www.mafoss.no 4 Verdsleiande maritim høgteknologi Kleven today

Kleven Verft, Ulsteinvik Myklebust Verft, Gursken

500 employees 2011: Turnover 2,3 bill NOK, earnings 204 mill NOK Family owned public company – long term ownership

Bnr. 351 – MT6015 Nov. 2012 Olympic Olympic Taurus Bnr. 354 – VS 499 Januar 2013 Rem Offshore Rem Leader

Bnr. 357 – MT 6015 Februar 2013 Myklebusthaug Dina Star

Bnr. 360 – VS485 Mk III Mai 2013 TBN TBN

Bnr. 355 – ST324 CD Juli 2013 Sanco Shipping Sanco Swift

Bnr. 359 – MT6022 Juni 2013 Rem Offshore Rem Installer

Bnr. 362 – MT6022 MkII August 2013 Olympic Olympic TBN

Bnr. 361 – SALT 100 PSV Januar 2014 Ugland TBN

Bnr. 352 – MT6022 MKII Februar 2014 Rem Offshore TBN

Bnr. 367 – VS485 MKIII L Mars 2014 Atlantic Offshore TBN

Bnr. 358 – ST324 CD April 2014 Sanco Shipping Sanco Sword

Bnr. 365 – SALT 301 OCV Juni 2014 Eidesvik Viking TBN

Bnr. 368 – VS485 MKIII L Juli 2014 Atlantic Offshore TBN

Bnr. 356 – VS 4412 Sept. 2014 Remøy Shipping TBN Our force of innovation Innovation happens when people with different knowledge meet to solve common challenges

Norwegian shipbuilding is no longer labour intensive Shipbuilding at Kleven

• Norwegian shipyards outsourced the building of hulls to Eastern European countries 15 – 20 years ago • High risk! • Kleven is backsourcing the complex blocks of the hull • To do this we are investing in automized production technology Why invest in new technology and production facilities?

• «We shall maintain the highest possible standards in our work and we shall always be reliable» (Marius Kleven, 1944) • Shorter delivery times • Reduced costs • Better quality • A “greener” production • A “greener” product

New production line to be ready Q1 2013 New welding related investments.

• 7200 m2 new workshops. • New pipe production cell. • New steel construction facility with – Robotized assembly and welding. – Automatic warehouse for profiles. – New welding-technologies

• Important for us to look at a complete process, not only separated jobs. Cost of workforce and robot from 2003 till 2012 Expectations on Governments

• Level playing field

• Ship-finance

• One maritime industry - i.e. the founding of SEA Europe

• The ”greening” of shipping

• Research and Development

• Education - i.e. lack of engineers and other technical key-personnell

• Infrastructure in general

Thank You for listening!

• The film can be seen at www.kleven.no