Shipbuilding Activities

and

Business Potential

at

North German Shipyards

Dipl.-Phys. Jörg Polzer

Turku, 18 May 2016

Agenda

• Impact of global economy crisis on German Shipbuilding Industry

• Lessons learned

The Past

• A New Cruise Industry Giant

• Shipbuilding 4.0

• Business Potentials

The Present

• New approach to Makers List Entries

The Future

New Orders Market Share

0

10

20

30

40

50

2005 2006 2007 2008 2009 2010 2011 2012 2013/3.Q.

Europe China Japan S. Korea

% o

f C

GT

Source: CESA

Community of European Shipyards Association

0

2

4

6

8

10

12

14

16

18

20

0

5

10

15

20

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Orderbook New Orders Completions

EU 28 + Norway

1.0

00

CG

T

CGT - Compensated Gross Tonnes Source: CESA

Community of European Shipyards Association

German Shipyards Basics

Turnover of German shipyards in 2014 amounted to 6.4 bn Euro

16 New Orders on Vessels worth 4.3 bn Euro

Orderbook covers 41 vessels worth 10.8 bn Euro

18,270 persons employed directly by the yards in 2015, 91% of these at

the ten largest shipbuilders spread over 20 locations in Northern

Germany

There are currently around 130 shipyards involved in all types of activities

from cruise ships to submarines or repair and retrofitting

(60 open water & 50 inland)

Meyer Werft

Gruppe

Thyssen Krupp

Marine Systems

Lürssen Gruppe

Lloyd Werft

Group

German Naval

Yards

Rönner Gruppe

Meyer Werft

(3.008)

Neptun Werft

479)

TKMS Kiel

(2.307)

TKMS Hamburg

(411)

TKMS Emden

267)

Fr. Lürssen Werft

978)

Norderwerft Repair

(94)

Lürssen Kröger Werft

363)

Neue Jade Werft

(99)

Peene-Werft

(259)

Yard Warnemünde

(1.400)

GNYG Kiel

(329)

Nobiskrug

(587)

Lindenau Werft

(29)

Bremerhavener Dock

(95)

Stahlbau Nord

(30)

Mützelfeldtwerft

(49)

Meyer Turku

(1.450)

Yard Wismar

German Shipyard Groups

Yard Stralsund Lloyd Werft

Bremerhaven (400)

Abeking &

Rasmussen AG

(393)

Blohm & Voss

Repair GmbH (403)

Blohm & Voss Ship-

yards GmbH (659)

Cassens Werft

(105)

Elsflether Werft AG

(98)

Fr. Fassmer Werft

(421)

Ferus Smit Leer

(43)

Flensburger

Schiffbau

Gesellschaft (780)

Husumer Dock u.

Repair (27)

Hitzler Werft GmbH

(50)Pella Sietas

(100)

German Dry Docks

(50)

Peters Werft

(102)

Schiffswerft Diedrich

(22)

German Shipyards

Flensburg

Kiel

Wismar

StralsundRostock

Bremerhaven

Hamburg

Papenburg

Lemwerder

Rendsburg

German Major Shipyards

Bremen

Wolgast

Berne

Technology Driver

Fuel Price Image

RegulationEnergy Policy

Fuel Price

Hydrodynamic 3D Modelling of Ship Hull

Propulsion Unit

Energy Consumers (HVAC, Illumination, etc)

Regulation

Nox, SOx, CO2 Emmissions

Ballast Water Management

Information & Documentation

Safety on board

Technology Driver

Specialization & Leading-Edge technologies

Focus on Cruise vessels, Megayachts and Special Task & Operation vessels

shows positive effect

Ship yards produce mainly special vessels which are tailor-made (“batch size 1”)

German shipyards have evolved into successful integrators of complex systems

Germany shipyards have increased productivity and efficiency (cont.)

Key to Success

2016 German Orderbook

27; 56 %

10; 21 %

2; 4 %

6; 13 %

2; 4 % 1; 2 %

2016 German Orderbook by Ship Types

Cruise Ships

Mega Yachts

Ferries

RoRo Cargo

Offshore Platforms

Offshore Transport Vessels

Source: CESA

Community of European Shipyards Association

New Cruise Industry Giant is forming

Lloyd Werft Group

November 2015: Genting affiliate „Star Cruises Singapore “acquires

Lloyd Werft Bremerhaven

March 2016: Genting Lloyd acquires Nordic Yards sites in

Wismar, Rostock and Stralsund (230 Mio. EUR)

Wismar

Stralsund

Rostock

Bremerhaven1 h flight

Lloyd Werft Group

• Excels capacity of Meyer Werft Papenburg

• 100 million EUR long term investment in the Lloyd Werft Group’s four

shipyards to create state-of-the-art facilities for new shipbuilding

• New Lloyd Werft Group Design Centre starts operation 30 May 2016

6.000 m² office space

1.500 m² display of mock-ups for cruise ship cabins, suites and public

areas and showroom for furniture and other movable items for cruise

ships.

Lloyd Werft Group

First 3.5 bn. EUR shipbuilding contracts for 10 cruise ships

between Genting Hong Kong and Lloyd Werft Group signed last week.

2 “Global Class” cruise ships for Star Cruises

Delivery 2019 and 2020

8 River Cruise Vessels for Crystal Cruises

100-passenger yacht and a 1,000-passenger cruise ship both in the upmost

luxury class

Orderbook covers next 10 years at full capacitiy!

Lloyd Werft Group

In common ship building project environments subcontractors are

stressed by disputes between shipowner and shipyard.

New scenario:

Shipowner and Shipyard under one cooperation

Benefit:

• Single point of contact

• minimized coordination efforts

• simplified clearance of design matching disagreements

• reduced risk for loss of profit

Industry 4.0

Shipbuilding is globally diversified

Europe = specialty ships Asia = mass production

Vessels are unique and highly complex, with special requirements in

terms of

• quality

• safety

• design & manufacturing

German shipbuilding is facing extensive transformations

They need state-of-the-art design tools and manufacturing processes.

Industry 4.0 makes it‘s way into shipbuilding

Promoting “Shipbuilding 4.0 “ requires further developments in

• process optimisation

• standardisation

• digital interconnectivity

• optimised information flow

• Intelligent material management and interfacing

within the entire supply chain (innovation chain)

Availability of digital data from basic engineering to ship’s operation will be

essential

Consider shipyards as data collector and data manager

Discontinuties in data flow will effect in loss of information

Loss of profit

Industry 4.0 Requirements

Demand especially in the following areas:

Turn Key contracting, public areas, technical areas, cabins

Interior fitting, fixed and loose ship furniture

Machinery

Electric equipment and systems

Energy and fuel saving solutions

Marine engines, propulsion systems

Environmental technology

Ship design and engineering

Deck equipment

Shipbuilding equipment, welding, surface treatment, hull building

Demand

Business Potential

Shipyard

• Design & Workflow

Management

• Data Handling

• IoT based

Manufacturing

(Shipbuilding 4.0)

• Steel Workforce

TurnkeyProvider

• Design &

Construction Support

• Electronics &

Automation

• Interior , Lights,

Ventilation

• Entertainment

• Safety on Board

OEM

• Energy Efficiency

• Propulsion Solutions

& Components

• New Materials

Yard

Number

of

Projects

Support

(1.000

EUR)

R&D Areas

FSG Flensburg 5 1.403

1. Analyse dynamic positioning of

vessels during the early stage of the

design phase.

2. Integrating 3D-based process

chains for the design phase of

vessels.

3. Productivity management during

production processes

4. Efficient processing of planning

data to optimize prototypes.

5. Development, evaluation and

assessment of technical security

using methanol to operate RoRo

passenger ships.

Research & Development Support

Yard

Number

of

Projects

Support

(1.000

EUR)

R&D Areas

Fr. Lürssen Bremen 2 536

1. Productivity management

2. Interior expansion of mega-

yachts.

TKMS Hamburg

2 517

1. Development of 3D-

coordination of the production

with the aim to optimize the

design of complex vessels

2. Modelling hybrid propulsion by

taking account of

hydrodynamic interaction.

3. Lithium Ion Batteries

Research & Development Support

Subcontractor System Integrator Investor

Korea

Japan

USA

Finland

Norway

400

German

Subcont

ractors

Shipyards

Germany

4 x Korea

20 x China

2 x Singapore

and others worldwide

Shipowner global

Europe

Japan

Brazil

Mexico

Nigeria

Export I

0.2 – 2.0 Mio USD

Short Term 1-2 years

Export II

30 – 1.000 Mio USD

Long Term 12 years

Equipment Based Finance

Equipment Based Finance

Thank You!

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