Page 14 - Damen Shipyards Group

14 STRATEGY | MESSAGE FROM THE BOARD 15

IN SUMMARY, HOW HAVE THE PAST TWELVE ARNOUT: Although 2019 will be a challenge, I expect 2020 will JAN-WIM: It’s been good to see Concordia Damen get off to an TOM: At Amels in Vlissingen (where Tom has been based), we
MONTHS BEEN FOR DAMEN? show a return to healthier fi gures. They won’t be outstanding, excellent start in inland shipping and river cruising. And Damen have taken the approach that ‘sustainability begins at home’.
it’ll take longer than that, but they will be improved. Still, there Technical Cooperation (DTC) and Damen Services continue to grow We’ve supported beach-cleaning activities on a regular basis,
ARNOUT: The last twelve months have remained challenging. are even now a number of markets showing signs of promise. in relevancy. Damen Schelde Naval Shipbuilding, with the help of sponsored local marine wildlife sanctuaries and installed a large,
There’s still little sign of renewed activity in the oil & gas industry. Offshore wind is now picking up, for example. We’ve had a DTC, has been notably successful in the modular construction of fl oating Seabin to collect rubbish from the harbour, for example.
Though we can see the beginnings of recovery, there are still successful launch of the new FCS 2710 in Europe and also in Asia. the POLA vessel for Mexico, enabling the Mexican Navy to meet
too many vessels idle so it’s not translating into new orders. And there’s a lot of discussion in North America about offshore their local content requirements and facilitating the construction of
Prices are under pressure in other markets too – the tug market, wind, too. We are well positioned to support this, having partners a complex naval vessel in record time. WITH THE COMMENCEMENT OF PROJECTS OF INCREASED
for example, is experiencing diffi culties because operators in in the US who have been building Damen-designed vessels for COMPLEXITY, FOR EXAMPLE AT DAMEN SHIPYARDS MANGALIA,
European ports are having to consolidate their assets in order to some years. DAMEN HAS SPOKEN OF MORE ‘ENGINEERED-TO-ORDER’ PROJECTS.
remain competitive. THIS MAGAZINE HAS A FOCUS ON SUSTAINABILITY, A VERY TOPICAL DOES THIS REPRESENT A BREAK WITH TRADITION AND A MOVE
JAN-WIM: Even as some of our main markets continue to struggle, SUBJECT RIGHT NOW. WHAT DO YOU THINK SUSTAINABILITY MEANS AWAY FROM THE STANDARDISED SHIPBUILDING PHILOSOPHY?
RENÉ: 2018 should have been a transition year for us, but it seems we are preparing ourselves, looking closely at every aspect of the TO DAMEN AND TO OUR INDUSTRY?
this period shall extend into 2019. We see signs of recovery, industry and our organisation, to make sure we are fi t for the future. RENÉ: I think we need to make a distinction between customise
but not as strong as we’d hoped. In general, turnover is OK, RENE: Sustainability is high on society’s agenda and also on our to order and engineer to order. It’s a similar process to what
but profi t is poor. There are a number of reasons for this, one Our industry has great relevance for the future. Rising sea levels agenda. We’ve been working towards increased sustainability we’ve done already with our tugs portfolio, where multiple
example being increasing labour costs in some regions. would suggest growing importance for the industry, more for quite some time. We were early to the game with green vessel types all draw on the same systems and benefi t from
dredging, more waterborne public transport – especially with innovations such as hybrid tugs, the Ecoliner and research interchangeability, stock spare parts, reduced warranty costs and
JAN-WIM: The industry is indeed still experiencing diffi cult times, more people living in heavily populated cities close to the water. programmes into subjects such as fuel effi ciency, hydrodynamics, higher uptime as a result.
but it shows the strength of the company and the Damen family Renewable energy is also growing in importance and there are command & control and fuel monitoring.
that we continued to invest over the last few years, for example, in clear trends towards increased defence and security. ARNOUT: We still believe in series building and are still committed to
Damen Shipyards Mangalia, Damen Shiprepair Curaçao and Damen Going forwards, digitalisation – with technologies such as remote standardisation. Building in series results in a more reliable product.
Verolme Rotterdam as well as in software such as CAD PDM and in RENÉ: There are renewed opportunities for ship repair and monitoring offering closer scrutiny on effi cient sailing and fuel It’s true that, with Mangalia, we are ready to build engineered to
our people – training them in preparation for the future. conversion projects. We are already seeing a healthy increase in savings – will help make our products more sustainable over order ships, but we will build them using standard components and
calls and things are looking good ahead. This goes not only for their entire lifecycle. Some of these vessels will be in operation equipment.
TOM: I think a positive over the past months has been to observe our yards, but for our Harbour & Voyage Repair division as well, for 30 years or more so it’s important that they are able to run
the resilience of the Damen business model during these diffi cult which is seeing exponential growth in its activities. effi ciently and cleanly throughout this time. JAN-WIM: We will use modularisation to deliver engineered to
times. The strategy of not being reliant on one product type has It is absolutely crucial that sustainable projects go hand in order vessels, wherever possible using standard equipment. This
really shown its effectiveness during this time. hand with profi tability – for us and our clients. No business is will facilitate a signifi cant reduction in lead times.
WHAT HAVE BEEN THE HIGHLIGHTS OF THE PAST YEAR? sustainable if it is not profi table. With increasing complexity and custom vessels comes a need for
increased focus on processes. The difference with these projects
WHAT OPPORTUNITIES DOES THE CURRENT ARNOUT: All the sectors of our new CRO (Cruise, RoPax & JAN-WIM: As well as supplying sustainable solutions to our is that project management and risk management become
MARKET SITUATION SUGGEST? Offshore) division are looking good. We’ve booked contracts products, we are looking closely at our processes also. We are much more important than they are in the more predictable
in all three sectors within the fi rst year, including an expedition looking at segregating waste for recycling and incorporating environment of a production line.
TOM: 2019 will be a year of consolidation and limited investment. cruise vessel and a complex offshore vessel over 10,000 dwt, solar panels to our production facilities. In Galați we have an
There are still plenty of challenges ahead. Competition is fi erce currently under construction in Mangalia. electricity reduction programme in the production processes. Ultimately, we are talking about custom vessels of standardised
so it’s going to be diffi cult. However, I believe the situation We are constantly analysing our approach to sustainability platforms. Our role is not only that of shipbuilder, but of
represents opportunities for Damen. To use a sailing analogy; on RENÉ: It has been an exciting start to operations in Mangalia with and, as with this magazine, aligning it with the UN Sustainable integrator. To fulfi ll this role we will continue to cultivate close
a clear day, anyone can sail. It’s when the weather gets tough you the CRO projects and there are other projects in the pipeline. Development Goals. relationships with our clients and their clients, our suppliers and
fi nd out who’s good at it. We have the right model to fi nd our This will certainly increase employment opportunities in the their suppliers and with universities and research institutes. We
way forwards. region. Also, the further alignment of activities between Amels ARNOUT: We see a lot of people coming out of universities with a are keen to collaborate to optimise the results of standardisation.
and Damen, for example on SeaXplorer production and repair desire to work for sustainable companies. This is good for us as,
To ensure success we need to be smart and invest where it and refi t has been a particular highlight that will provide a good with our close involvement in sustainability, they are attracted to us. TOM: It’s in Damen’s DNA to build in series. It’s a philosophy
matters – where there is potential for growth. We also need focus on the market. that’s proven remarkably versatile in many markets. What we
to make sure that there is openness and close cooperation We have a clearly defi ned goal at Damen of improving quality need to do going forwards, to maximise the effi ciency of the
throughout the group so we can maintain control of costs and TOM: It’s been good to see the yachting market performing so at the same time as reducing costs. Incorporating added model, is to further increase the collaboration between the
there are no surprises. Such a culture of trust is natural at Damen well. It’s no coincidence – the closer integration of Damen and sustainability goes hand in hand with this; more effi cient various business units and the commercial part of the operation
– everyone feels part of the family. Amels benefi ts both the product portfolio and the standards of production leads to cleaner processes and, thereby, lower costs within the group. By paying close attention to the markets, we
operational excellence. for innovative, more sustainable products. can make sure that our stock levels align with market needs.