Less vessels have been built and competition has become even more fierce compared to 2012. Nevertheless there are shipyards with full order books until 2017.
The message is clear and simple: German shipbuilding is working under pressure while marine engineering is still a growth market. T[ds_preview]his brief version of the German Shipbuilding and Ocean Industries Association’s (VSM) latest overview concerning the state of the industry confirms the general tough conditions of the past years. While globally there was a positive demand for new ships, incoming orders for German newbuildings remained on a low level, however.
Though data of the traditionally busy fourth quarter 2013 are still missing, the general trend is clear: Quality production including latest technology has become more important than ever. Furthermore, the overall situation of shipbuilding is still affected by the financial crisis which began in 2008.
According to figures presented by German trade union IG Metall in September 2013, in total 15,805 people were directly employed in the German shipbuilding industry (permanent staff) – which is about 1,000 employees less than recorded at the panel in the previous year. The decline in employment thus amounts to 6.2%. Although some shipyards have managed to aquire enough backlog, this trend for less in most categories parallels expiring order volumes. The foreseeable overcapacity of the global shipbuilding industry will therefore even get worse in 2014.
But there is also reason for optimism: The German marine supplies industry has presented rather untroubled prospects so far. This fact gives rise to the estimation that the German maritime cluster as a whole is still very vital.
Searching and defending niche markets
In shipbuilding, however, the search for niche markets continues at increased speed. One strategy is to bundle competence: Meyer Werft has even announced to look for other shipyards as partners. This decision is hardly based on the shipyard’s still full order book but rather on the fact that competition is expected to become more fierce. As container, tanker and bulk carrier newbuildings cease to be a profitable option for many shipyards globally, more and more yards will try to get into relatively profitable niches such as building cruise vessels.
As Asian yards have won the race in terms of mass production, the quality of German maritime engineering and therefore the education of naval architects and engineers have become key factors more than ever. High-tech is not always a fast-selling item, though. The new business area offshore wind energy did not live up to the yards’ expectations in 2013.
The insolvency of Siag Nordseewerke in Emden illustrates that wind power is not necessarily a solution for German shipyards. Under the new regime of DSD Steel Group only 240 of once 750 employees continued to work at the 1903-founded facility, but orders for offshore structures such as tripods are still scarce.
Nevertheless, offshore oil & gas as well as arctic exploration are topics to come along well in the future. But in order to get into these segments shipyards need to offer high-end technology – and they have to be patient.
On the following pages the most important developments at Germany’s leading yards are outlined. In addition, a list with orders and deliveries can be found at the pages 38–43 in this issue.
Abeking & Rasmussen
The SWATH (Small Waterplane Area Twin Hull) specialist and renowned builder of authority crafts Abeking & Rasmussen had a successful year in yacht building with delivery of the 82.48m »Secret«. The vessel is the largest yacht built by the shipyard so far. Construction number 6493 was delivered on 30 May, ahead of schedule. The yacht’s architecture was developed by Abeking & Rasmussen’s own in-house team while her exterior was composed by Australian designer Sam Sorgiovanni.
With yard numbers 6497 and 6498 two further 81.8m yacht projects for undisclosed owners fill the order book. Both are built in cooperation with Stahlbau Nord. They are scheduled for delivery in June this year and in April 2015. A third yacht order has also been placed.
As for SWATH building the vessels »Jelgava« and »Rezekne« were constructed in Lemwerder for the Latvian Navy. While »Jelgava« was delivered in June, her sister ship will be completed this year. Meanwhile, the SWASH prototype »Explorer« has also been launched. This single hull vessel was successfully tested by Lotsenbrüderschaft Elbe. However, it is not clear yet whether they will also operate this ship permanently.
Fassmer
For the yard in Berne 2013 proved quite successful. They completed rescue vessel »Pidder Lüng« as the latest ship of rescue organisation DGzRS. Furthermore, Fassmer aquired its first comprehensive refit order in yachting with »High Power III«. The retrofit of the 70 m ship is to be completed at the end of April this year. In October 2013 Fassmer signed a building contract for an environmentally friendly Helgoland ferry ordered by shipowner Cassen Eils with integrated dual fuel drive. LNG will fuel both main and auxiliary engines.
In July 2013 research vessel »Mya II« was christened, emerging with an environmental passport and minimal draught. Fassmer also delivered the new 41.5m research ship »Fugro Helmert« construed for exploration into renewable energy resources. It is the yard’s third similar newbuilding for Fugro. In March 2013 buoy tender »Schillig« was christened. The public authority craft will be in charge of about 400 sea markers but will also provide characteristic water discharges at a draught of 1.6m. »Bugsier 7« and »Bugsier 8«, two azimuthing tractor tugs, are also under construction. This order was placed in November 2012 and demonstrates Fassmer’s ability to integrate latest experience in azimuth tractor operation into their newbuildings. Completion is planned for the third and fourth quarter of this year.
P+S Werften
After the insolvency of P+S Werften, large ferries »Copenhagen« and »Berlin« ordered by Scandlines in 2010 will actually enter service at the Danish-German shipowner against all odds. Scandlines had rejected the once 184mill. € newbuildings due to constructional defects but bought the ferries back according to German news agency dpa for 31,6mill. € in January this year. Scandlines is now looking for another yard to modify the ships and make them lighter. The 169m vessels were under construction at Volkswerft Stralsund when P+S Werften went bankrupt in 2012.
In February, however, one of two special ferries for DFDS has been finished. The »Ark Germania« (195m) and her sister vessel »Ark Danica« will provide service for the German and Danish Navy amongst others. Liquidator Berthold Brinkmann successfully managed to keep this DFDS order for the company, so 500 of the yard’s workers could finish this project also under construction when insolvency was announced. The two remaining newbuilding orders for DFDS were delayed into 2014 because of owner additions to the original contracts.
The future status of the company’s Stralsund facility remains uncertain: Talks with prospect buyers Nordic Yards and Global Wind are going on, a P+S company spokesman said in February. The Peene-Werft Wolgast, however, has become part of Lürssen in Mai 2013 and is now committed mainly to naval ships.
Lürssen Group
Only four months after overtaking the yard in Wolgast for 17mill. €, Lürssen invested at the new site and claimed to have opened Europe’s largest steel cutting plant at Peene-Werft for about 0.5mill. €. The 50m plant is designed to cut steel plates for two frigate fore sections first. For this purpose Lürssen transferred the construction of two type F 125 bows from Bremen to Wolgast. The ships are part of a 2.6 bill. € contract shared by Lürssen and Blohm + Voss. Another huge order has recently been placed by the Kingdom of Saudi Arabia. Media reports said Lürssen might build up to 100 fast patrol boats for the Saudi Coast Guard.
The more spectacular pillar of the company, however, is mega yacht building. The world’s largest yacht, the 180m »Azzam«, was delivered in October. Lürssen thus spread their reputation for luxury to the Far East with another record in terms of ship size and building time: less than three years from steel cutting to the handover. The yard also completed the 85m charter yacht »Solandge«. At 2,899 gt the voluminous ship features six decks and successfully completed tests. The vessel has been shortlisted for the »Yacht Interior Design« award. The exterior was created by Norwegian superyacht designer Espen Oeino, the interior design is by Aileen Rodriguez.
So Lürssen made it even three times to 2013’s Top 10 in superyacht building with »Azzam«, »Solandge« and »Quattroelle« as the latter was finished in 2012 but taken by her owner in February 2013. And there are still more impressive yachts to come: »Omar« of respectable 15,500 gt will measure 152m when finished in spring 2016, while 7,600 gt »Tatiana« will be 120.85m in length (2015). Further projects under progress are »Global«, »Green« and »Quantum Blue« (all in 2014) as well as »Orchid« and »Mistral« in the following years.
Blohm + Voss Shipyards
The partner of Lürssen in frigate building demonstrated naval competence with the christening of »Baden Württemberg«, in Hamburg in December. This first frigate of the new class F 125 is the first of four new ships of the German Navy. The type ship was planned to be available at the end of 2016 but delivery is delayed, as the German Defence Ministry confirmed reports of problems with a flame-retardant coating peeling off. So delivery will now be in 2017.
Last year the traditional shipyard also launched the 82m »Graceful«, an unusual yacht featuring a 15m indoor pool ready to be turned into a ballroom. A foldaway balcony gives the owner direct access to the sea and contributes to the innovative atmosphere of this design. This is an important signal since »Graceful« was the first order for the civil shipbuilding branch of Blohm + Voss since the takeover by financial investor Star Capital Partners. Moreover, Blohm + Voss showcases elegant and futuristic design in yacht building with a yacht concept by Iranian designer Zaha Hadid.
Flensburger Schiffbau-Gesellschaft (FSG)
In Flensburg new orders and deliveries run together for FSG: The yard has secured a large order of two special offshore vessels for Norwegian shipowner Siem Offshore in mid-February this year. The so-called well intervention vessels designed for maintenance and repair tasks in the offshore oil industry are considered an important step towards FSG’s aim to conquer the offshore market. Furthermore, the RoRo cargo vessel »Oceanex Connaigra« launched in May and delivered in September is the first vessel to feature an innovative waste gas desulphurisation plant which already meets the new ECA limits. Another special feature is the high loading capacity of 19,300t including flexible deck configurations. »Oceanex Connaigra« proves German shipbuilding’s ability to survive hard times focusing on special ship design.
Both 151.5m semi-submersible heavy-lift ships booked at FSG by Dutch company Rolldock are also brand new types. The second is being delivered in June to follow »Rolldock Star«, handed over in December 2013. Also pioneers are FSG’s two 127m seismic ships for delivery this spring and in October to Western Geco. »Amazon Warrior«, the first of these two special ships designed for geological investigations, was launched in November to mark FSG’s first step into offshore. Formerly known as ferry builder, FSG once more entered a new special ship market and was trusted to built the biggest ships in the new customer’s fleet.
Talking about ferries: RoRo vessel »Ulusoy-15« was delivered in January 2013 as the second of two units ordered by Ulusoy Sealines featuring traditional FSG shape with an additional intake. This 4,100 lane metre class was followed by another Turkish order delivered in April 2013: »UN Istanbul« for operator U.N. Ro-Ro Isletmeleri featuring onstruction of RoPax ferry »Loch Seaforth« for Caledonian Maritime Assets commenced in September 2013.
Sietas
The final closedown of Germany’s oldest operational shipyard Sietas after insolvency in 2011 could be prevented recently as Russian investor Pella Shipyard took the helm. Sietas’ last contract, the jack-up vessel »Aeolus«, was completed in February in Hamburg-Neuenfelde while the 84m jack sets are being installed at Lloyd Werft in Bremerhaven. The 139m vessel for Dutch customer Van Oord is regarded to be one of the most modern of its kind and developed for use far from the coast in offshore wind farms. It features a transport capacity of 6,500 dwt and can work safely in depths of up to 45m. Since guarantees for jobs and the building site are part of the takeover by Pella Shipyard, Sietas will continue to built ships in the future.
Meyer Neptun group
The internationally renowned specialist for cruise vessels Meyer Werft in Papenburg and daughter Neptun Werft in Rostock have again reason to celebrate success. As for ships delivered, the balance sheet in 2013 contains one LNG tanker (»Coral Energy«, see HANSA 2/13 supplement), two cruise vessels as well as ten river cruise ships. Nevertheless, Meyer reported challenging significant underemployment at the start of 2013. A so-called »pact for labour and innovation« helped to allocate orders and work flow. Additional savings of about 60mill. € increased competitiveness.
In mid-March the cruise ship »Aida Stella« (71,304 gt) was delivered to Aida Cruises. »Norwegian Breakaway« (145,655 gt), the first of two cruise ships of this class for US company Norwegian Cruise Line, followed in April. Her sister »Norwegian Getaway« was delivered in Januar of this year, after a construction period of only 15 months.
In November the keel-laying of »Anthem of the Seas« took place in Papenburg. The 167,800 gt cruise ship for Royal Caribbean International is the largest vessel of the shipyard so far – next to her similar sister »Quantum of the Seas«, which is well under progress and due to be delivered in November. The twins are the result of one year in research and development in Papenburg. This has enabled the yard to provide the latest in energy efficiency and environmental technology for 4,180 cruise passengers respectively.
Meyer Werft managed to obtain four further cruise vessel orders since spring last year, so cost cuts introduced in early 2013 obviously pay off. First of all, Royal Caribbean signed a contract with the shipyard to construct a third Quantum-class cruise ship for delivery in mid-2016. In July Norwegian Cruise Line confirmed the order of a second Breakaway Plus-class vessel, the »Norwegian Bliss«, scheduled for delivery in spring 2017. »Norwegian Escape«, the first, will be ready in October 2015. Those two 163,000 gt ships are worth 1.32 bill. € in total.
On the Asian cruise market Meyer also succeeded: »Star Sagittarius« (150,000 gt) was ordered by Star Cruises in October. Only four months later the company, which belongs to Genting Hong Kong (a major shareholder of Norwegian Cruise Line), placed an order for a sister ship. The vessels cost about 700 mill. € each and are to be delivered in late 2016 and autumn 2017.
Meanwhile Neptun Werft in Rostock announced that by mid-2014 the company will have built 25 river cruise ships for Viking River Cruises. 15 of these have already been handed over, thereof ten in 2013: »Viking Skadi«, »Viking Bragi« (in February), »Viking Tor« and »Viking Var« (in March), »Viking Forseti« (in May), »Viking Rinda« (in June), »Viking Jarl« (in July), »Viking Atla«, »Viking Baldur« (in August), and »Viking Magni« (in September). The financing of twelve further river cruise ships for Viking is secured: In February 2014 KfW IPEX-Bank reported its financing encompasses a total 288.9mill. €.
Thus, the series of success in river cruise will continue for Neptun, though there was a little delay. In April 2013 »A-Rosa Flora« was laid down to enter service in 2013 but delivery was postponed by A-Rosa Flussschiff due to »restraint in bookings« for the relevant period of early 2014. The 11 th river cruise vessel of A-Rosa’s fleet will therefore be operational in spring this year.
With research vessel »Sonne«, which was laid down in April 2013, the Meyer Neptun group has another prestigious order in its books. The vessel is to be ready in early 2015.
Nordic Yards (Wismar and Rostock)
With 300mill. € in sales and 320 employees more than in 2012, Nordic Yards draws a positive balance of the fiscal year 2013. The company’s locations in Wismar and Rostock-Warnemünde will operate at full capacity until 2017. In June the State Government of Mecklenburg-Vorpommern increased the guarantee for Nordic Yards closely connected with a Danish order by company DBB Jack-Up Service for a wind power service ship. The vessel, to be named »Wind Server«, is scheduled for delivery at the end of this year and comes with two options for further jack-up ships.
In August the gigantic transformer platform »BorWin beta« was undocked in Rostock-Warnemünde. And in November the Wismar yard laid down two icebreaking rescue and salvage vessels for a total of 150mill. € ordered by the Russian Ministry of Transport. They will be delivered in 2015 to serve sea rescue operations in offshore oil and gas in the far North. The Russian connection pays off in various ways: The yard in Rostock laid also down the 2,500t deckhouse for Russian icebreaker »Viktor Tschernomyrdin« in December. The order placed in August is worth about 30mill. €. The deckhouse will be fully equipped by Nordic Yards for the vessel to be completed in 2015.
Ferus Smit
Ferus Smit Werft in Leer launched multipurpose cargo ship »Reggeborg« in December as the second of three 23,249 dwt vessels. At 169.7m in length the newbuilding comes close to the size limit of this shipyard. »Reggeborg« was delivered to her owner Wagenborg Shipping in February this year. Sister »Reestborg« had already been completed and handed over to Wagenborg Shipping in March 2013 while »Roerborg« is planned to be delivered in September this year. Moreover, Ferus Smit secured a major new contract in November: The company will build six so-called ecobox ships for Symphony Shipping to be ready in 2015 and 2016. The six 10,500 dwt cargo vessels are built for Singapore.
Lloyd Werft
For the first time since 2010, the yard has started commitment
to newbuildings again. In June 2013 the large, cutting-edge, multi-functional construction vessel »Ceona Amazon« was ordered by Ceona Services Norway. The vessel will be capable of operating in multiple pipelay modes. The pipelayer’s hull was prefabricated at Polish Crist shipyard but the vessel will be completed in Bremerhaven. At finally 33,000 gt the vessel will thus contribute to Lloyd Werft’s reputation beyond repairs. Delivery is scheduled for October this year.
ThyssenKrupp Marine Systems (TKMS)
In autumn reports of Saudi Arabia’s willingness to buy five submarines for 2.5 bill. € dominated TKMS’ agenda. There was hope in Kiel that Berlin would approve the Saudi order for the type 209 submarines, which obviously hasn’t happened yet. Officially confirmed, however, is a contract with Singapore for the delivery of two submarines of the new class 218SG until 2020. The submarines will be built in Kiel, as TKMS said in December.
In mid-2013 the Canadian Government announced it was buying the blueprints of an existing German naval supply ship from TKMS Canada. Construction on the new vessels, based on German design, will begin in late 2016. The in-service target is between 2019 and 2020. TKMS’ design was chosen as it is consonant with Canadian Royal Navy specifications for operational capabilities, costs and timeline. The ship will be built at Vancouver Shipyard.
Thanks to the business with naval vessels, TKMS increased pre-tax profit by 30% to 658mill. € in the business year 2012/2013.
Abu Dhabi Mar (Nobiskrug, ADM Kiel, Lindenau)
In Rendsburg, Nobiskrug is about to finish the second of two 58m 1,000t multipurpose RoRo naval tenders which reports said were for Abu Dhabi. The first of the ships, »Rmah«, was completed in November while delivery is planned in 2014 for both. The start of the Abu Dhabi Mar (ADM) group into the business with offshore platforms, however, suffered a serious setback last spring: Siemens cancelled the multi-million Euro contract for a transformer station for offshore wind farm »Nordsee Ost«. Siemens as well as the shipyard declined to comment on the matter. The building of an accommodation platform for »DanTysk« wind farm in the North Sea, however, proceeds. It was commissioned by Vattenfall and Stadtwerke München and is scheduled to be finished at the end of this year.
The newly formed shipbuilding group also gained recognition in the yachting industry. »Mogambo«, delivered in 2012 from Nobiskrug, was awarded »Best Motor Yacht« in the category of 1,300 gt and above by the »World Superyacht Award« judges in 2013. Furthermore, the Nobiskrug-built yacht »Odessa II« was officially delivered in 2013, though she was already spotted leaving her shed at ADM Kiel in 2012. Her interior is by H2 Yacht Design. And there is another – gigantic – leisure project: 140 m sailing yacht »White Pearl«. This vessel ordered by Russian billionaire Andrey Melnichenko is planned to set sail in December 2015.
Sverre Gutschmidt, Nikos Späth
