He founded Friesland Kabel right before the start of the great shipping crisis. Further setbacks in the offshore market and in South America and Russia were to follow. Nevertheless, Klaus Moorlampen presents an optimistic outlook. He has long-term contracts, his budget is in the black and even expansion is on his agenda
You started in 2007 in a very good time for business. And right after the crisis impacted maritime markets[ds_preview] …
Klaus Moorlampen: Right.
… have you ever regretted the step so far?
Moorlampen: No, not at all. The advantage was that I had contacts collected in 20 years in this field as a staff director and I was well-known in the industry. Of course, it was very important to have the company Helkama in the background, whose exclusive representative in Germany we are. At the moment we are in the quietest time. It is very very quiet this year. I’m really glad to have contracts with the Lürssen Group and others.
The trend was positive despite the difficult market situation?
Moorlampen: Nine years ago I started with three employees. The business has grown since, and I eventually have included Russia and South America into our portfolio. Meanwhile, we are 34 employees. We have expanded in yacht building especially. In this business area we have been committed to marine cable weight and could reduce eight tons here compared to competitors. Finally, we have built a large warehouse, including cutting lines.
Lürssen is among your customers for yachts and naval vessels. These are good markets in Germany. Nevertheless, there are more thriving markets than shipbuilding …
Moorlampen: The shipbuilding industry located here will focus on individual segments. There is Meyer Werft, Lürssen and now Genting as owner of Lloyd Werft Group. We have a long-term contract as sole cable supplier with Lürssen who dispose of a well-filled order book. FSG, Abeking & Rasmussen, Fassmer are all customers. Since the Meyer Werft has a new site in Turku and Helkama is producing there, we also have better access in Papenburg now, where actually a competitor is the main supplier. We were also involved in all German-built offshore platforms by Siemens as we have developed special cables for platforms with Tennet, such as a camera-hybrid cable. We are not a »simple distributor«, we also advise and develop. Abroad, we have been active in South America. The offshore business with Petrobras had started very well, but then the great crisis hit Brazil, currently there is nothing to be gained there. As for Russia, I’ve been doing well for years, a very good deal. But even there, the situation is completely shut down after it came to disagreements between the government of Putin and Europe. So I had to create something new. As a result, I have established Friesland Kabel Singapore to enter the refinery and offshore markets and maybe even come to Malaysia.
Do you envisage further growth?
Moorlampen: Asia is a huge market. The question is, how to enter it. If I manage to gain a foothold there through relationships and forms of cooperation, this will turn out a huge market for us. If not, I will take this step as the markets there are too closed. This is the strategy I chose for Brazil already.
Would you consider further regions?
Moorlampen: At the moment, we focus on Asia as a new market. In any case Germany determines 75% of the business. But I always look around.
Are consolidation projects an option realized by collaborations, mergers, acquisitions or investors?
Moorlampen: My philosophy is to act as the sole shareholder because I can act quickly. Investors want a say in it, so I would lose my independence and flexibility. This is why I’m rather willing to stay smaller, but more flexible. I would consider cooperation, yes, if you can develop business from good contacts. That works very well in Chile, Argentina, Croatia and now and then in Romania. A takeover only comes on the agenda when one gets too big. On a case-by-case basis you never know how to respond. This is, after all, a question of price. There have been prospect buyers already, but I made it crystal clear: If you take over the company, I’m out. I want to stay in a league of 30 people and keep up the flexibility.
You are economically viable on this basis?
Moorlampen: Yes.
Meanwhile, do you talk with shipowners directly?
Moorlampen: Yes, that is the next step. For example, we have a new, 100% UV-resistant cable which no longer needs to be pulled into the pipe. This is interesting for tankers. So I am now talking with shipowners in Germany who have their vessels built in Asia. If the shipowner succeeds in convincing his shipyard, it could be a business for us.
The discussions with shipowners increase, but that is cumbersome also because many do not deal with it, they just leave it to the shipyard. You have to convince people. With building yachts it is completely different as the boats are all unique.
How was 2015 for you?
Moorlampen: It was comparable to 2013 when we benefited from the growth in the offshore market. In 2014 there was a kink. However, it must be said that with Russia and Brazil two important markets have collapsed – nevertheless we have achieved a relatively good result, because we have done more in Germany.
Can say something about sales volume and earnings?
Moorlampen: Adding direct and commission business, our revenue is between 15 and 20 mill. €. Since the company has been founded, we have never been in the red – not even at a black zero.
Has the crisis become perceptible in form of a tougher price competition?
Moorlampen: The price war is to be noticed and what is more, foreign manufacturers flock to the market. Turkey, for example, is very active currently and these competitors are active in Dutch shipyards already. However, Turkey is not Europe and the result is an important warranty issue some quality shipyards do not want to risk. However, there are prices that undercut the normal market level by 30%.
How long could you economically »survive« the current market level?
Moorlampen: Our contracts will run until 2020/2021, in Wolgast alone 35 navy ships will be built. Supplementing the long-term contract with Lürssen we have further business with Abeking & Rasmussen, Fassmer or Siemens. At Tennet we also have some experience.
What is the source of your optimism?
Moorlampen: We are constantly in development. I think that there will be high-tech shipbuilding for yachts or cruise liners in Germany for a long time, the German engineering is in demand. In this market, we have a very good position. I am also optimistic South America will pick up again next year.
Interview: Michael Meyer
Michael Meyer
