Maritime/offshore technology market opportunities in FranceHelsinki - 27th of May 2015

Shipbuilding Industry in France

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• Turn over : 8 billon €

• Employees : 40 000 persons

• In STX: 2000 STX + 5000 subcontractors companies.

• 6th world rank

• 2nd European (private and military) after Germany.

• Exports represent 80% of the French production

• Strengths: Mastering offshore technics, innovations and good investments in research

• Gas and oil offshore related business: 9,4 billions €

• Worldwide: France is the second biggest maritime domain in the world after USA

• (Source: observatoire de la metallurgie)

Inside EU shipbuilding and refitting for civilian and military ship ; and all related subcontractors • 34 billion € (world : 72)• 350 000 people (world : 500 000)(Source: European commission, leadership report, 2013)

STX France St Nazaire – Cruising shipsOrder Book full till 2019 + Options

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Helicopter ships Russian Navy

2 pcs

Deliveries Autumn 2014 and 2015

OASIS III- IV ships for RCCL

2 confirmed orders

360 m – 6360 passengers – 2700 cabins

Deliveries in April 2016 and 2018

VISTA Cruise ships for MSC

2 confirmed orders

315m – 2250 cabins – 820 crew cabins

Deliveries in Summer 2017 and 2019

OptionsRCCL – Cruise ships

letter of intention for 2 ships

Deliveries in 2019 and 2021

VISTA Cruise ships for MSC letter

of intention for 2 ships

Deliveries in 2020 and 2022

STX for Sale!2 potential buyers • Daewoo• Fincanteiri(Source: le marin and mer et marine)

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STX France St Nazaire – Offshore projectsMarine Renwable Energy

• First requests for quotations have been sent ; need for: welders, painters for the bottom part (jacket) and upper part.

• Possibilities to work with subcontractors who are working with STX for the electrical fitting: Eiffel Industry. Need for: electrician, substation control system, inside fitters, installers.

Off shore project time table

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At the moment STX is quoting for more than 20 different off-shore projects due to start for the first one in September 2015.

Answers should come at the end of May or June 2015

Oasis III and IV

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What is in it for the Finns!

• Balconies

• Floorings

• Engines

• Energy saving systems

• Lifts

• Service lifts

• Outfitting

• High fog systems

• Electrician

• Interior fitting

• Exhaust pipes

• Automation systems

• Windows…

• Doors, fire doors,

sliding doors

More than 130 Million Euros of turnover

About 30 Finnish companies

Order for options on Oasis IV are mostly confirmed.

Opportunities can still arose for the second ship B 34

2 VISTA cruise ships for MSC

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Value of the ship About 700 millions Euros (each)

Description 315m

2250 cabins 820 crew cabins5 700 passagers

STX needs and requirements:

• Different than for the Oasis: smaller size - less challenge: allowed to take more risk in choosing new companies.

• STX teams learned to work with Finns on Oasis project and so fare appreciate it.

• Looking for new comers specifically for painters, welders and plumbers – Cabins: furniture: cupboards, beds etc….

• Looking for cheaper solutions: maybe would consider working with Turn Key areas and modules.

What are the purchasers like at STX ?

IMPORTANT: Never forget that the ship-owner is their customer!!!

And he is always right!

• They are looking at the best quality for the cheapest price

• Valuing the know-how

• Not buying from Asia anymore : too much risk and delay

• They have the experience of the Oasis and know better how to work with Finns.

• They do not want to buy turnkey projects due to a failure of a French partner

• They expect you to read all specifications and terms: a lot of information is not on the drawings

• Ship owner's requirements have changed since the price level is a lot lower from year to year.

• The purchasers rely on their technical specialists

• There are many purchasers

• Because they are French : they will avoid conflict will never say no27/05/2015 © Finpro8

Purchasers at STX

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Benoit LORRE

Subcontracting

Bertrand PAQUET

Director of puchasing department

Richard BRUNETEAU

Equipments

Pierre SARRAMEA

MRE

New market development

Jacqueline RENIER

Sourcing methods & development

Georges-Edouard RABU

Cabins

Serge Hily

Metallic parts, steel Plates, profiles

DCNS – MILITARY SHIP YARD

• Owners: state 64% - Thalès: 34% • Services for naval shipyards and bases.• Civil nuclear engineering • Marine renewable energy• Where: all over France (Nantes, Lorient, Cherbourg, mother company in Paris…)

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• Group: Chantiers Piriou, Piriou Naval Services, Piriou Ingénierie, Ateliers Normand, WAS, SEAS, BOPP, Seatech Engineering, Kership (partner: DCNS).

• Turnover 2012: 122 million €• Staff: 1000 persons• Where: allover France: mother company : CONCARNEAU

PIRIOU

• Staff: 13 000 persons• Annual revenues: 2,6 billon €

• Staff: 1 000 persons• Annual revenues: 122 million €

CMN - Constructions mécaniques de Normandie

• retrofitting, outfitting, design

• Shipbuilding: small passenger ships, barges, pushers

• Where: Cherbourg

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OCEA

• Shipbuilding: Coastal surveillance, Passengers transport, environment, Motor Yachts

• Turnover: 61 Million €

• Staff: 227 employees

• Where: LES SABLES D'OLONNE, St Nazaire

• Staff: 400 persons• Turnover: 27,6 Million €

• Staff: 227 persons• Turnover: 61 Million €

REPAIR SHIPYARDS

ARNO DUNKERQUE (Dunkirk, north of France)

• ship repair and conversion in the harbor of Dunkirk

• 3rd French harbor

• staff 160 persons

CEGELEC (all over France)

• part of VINCI group: 36 billion €, staff 190 000 persons

• design, installation, maintenance of systems and sub-systems in industry,

infrastructure and the service sector.

Damen Ship repair (Brest)

• ING tankers, oil tankers, semi-submersibles, shuttle tankers, FPSO, offshore

construction, jack-up rigs, ro-ro vessels and ferries, well-known for its LNG tanker

expertise.27/05/2015 © Finpro12

MARITIME RELATED CLUSTERS OR ASSOCIATIONS

• NEOPOLIA MARINE - http://www.marine.neopolia.com/

• BRETAGNE POLE NAVAL INDUSTRIAL CLUSTER

http://www.bretagnepolenaval.org/?langue=en

• Groupement des Industries de Construction et Activités Navales:

GICAN - http://www.gican.asso.fr/

• POLE NAVAL DE MEDITERRANNEE

http://www.polemermediterranee.com/Le-Pole-Mer-Mediterranee

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Finns in France – It is quite easy after all!

• Long term projection

• EU country : customs, free travelling of the workers

• Eur.country : no money exchange costs

• Close to Finland: possible transportation either by shipping, trucking, railway,

ro-ro etc…

• Other ship yards surrounding

• Other industrial sectors via cluster or else

• New technologies etc…

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Business opportunitiesBig regional projects

ALSTOM

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http://www.alstom.com/uk/projects/grid/dolwin-3/

As the general contractor for TenneT, Alstom will supply and build both the onshore and offshore converter stations, as well as the connecting cable systems for DolWin3. The project will use direct current technology to deliver the energy generated offshore along an 83 km sea cable to the mainland.

Marseille Fos on track for mega-ship repair facility

© Finpro17

http://www.marseille-port.fr/en

Leading French port Marseille Fos is set to re-open its giant Drydock 10 shiprepair facility – mothballed since 2000 – this autumn following a €28 million renovation project due for completion in September.

Work started early last year under a port authority plan to reintroduce a repair and maintenance base for some of the largest ships afloat. The 465-metre long, 85m wide dry-dock – third biggest in the world after Lisbon and Dubai – is aimed principally at mega cruise ships but will also target the latest generation container carriers, LNG tankers, bulk vessels and offshore rigs.

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Floating windmill farms: 4 areas in France

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Four parameters in Mediterranean area have been chosen, 2 in the Languedoc Roussillon and 2 in Provence-Alpes-Côte d ’Azur. They have been designated as optimal areas to implement off-shore windmill farms.

These are ares of few hundred square kilometers with windspots and enough sea depth close to sea shores : cotes du Roussilon, cap d’Adge, Petite Camargue and to the Rhone river’s entrance where there is an ongoing program called Provence Grand Large led by EDF new energies (Energies Nouvelles).

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Renewal of the town of Sete harbour

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Town of Sete (close to Montpellier)

In November 2014, the regional council has given 58 million of Euros to the harbor of the town of Sète in order to improve their infrastructure.

The first part of the work is estimated at 14,2 million euros on a new passenger platform, two more posts will be created and the quay will be enlarged. In this first part will be also created a new maritime station to allow a short stopover for cruising ship to rise the capacity from 300 000 passengers to 500 000.

The second part with a huge budget of 44 million Euros would concern the enlargement of the area over the sea named quay H, it will be 470 meter long and would be 3 hectares extra area over the sea to build a new container terminal.

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Cherbourg – new place for wind mill factory

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Cherbourg is very well situated considering the surroundings projects with Marine renewable energy for France and Britain. And now this town is taking this opportunity to develop its harbour’s activities

In 2011, Port Normands Associés (PNA) who is managing Cherbourg harbour, took over the challenge from Alstom and EMF (French wind energy cluster with EDF-EN Dong Energy who has won the bid to build offshore windmill farms in Coursell, Fécamp and St Nazaire), to open 38 hectares of harbour space and to build public areas.

The entire project investments are about 40 millions Euros.

Alstom will shortly settle in Cherbourg to produce windmills blades with his partner LM Wind Power.

In a second phase of the work has started in 2014 to reorganise roads and railways around the new constructions.

PNA has integrated in the area 39 hectares of workshops for the renewable marine energy projects.

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Calais second northern European port after Dover

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Calais harbour has welcomed 10 million passengers in 2013 and is the second harbour in Europe straight after Dover. During the last 2 years the goods volumes have increased about 20%.

In January 2015, European Union council has given 14 million Euros in renewal project to adapt the harbour to these changes, the project is called: « Calais Port 2015 ».

Work should start this year and end in 2020.

It includes a full refurbishment of the existing structures, 3 kilometres dike will be build following the stickiest environment requirements.

This new harbour will be able to host bigger passenger ships.

The estimations are forecasting the generation of about 2000 jobs for these tasks.

On the top of that the whole region has received 1 billion Euros investment founds from European Union to build more social « green » accommodation and fight against unemployment by creating new activity areas with investments towards innovative industries.

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Marie-Zoé Belon-Laitinen

Base Vie des sous-traitantsRue de la forme Joubert44600 St Nazaire - France

Tel: +33 6 14 17 23 31Tel: +358 406 724 264Marie-zoe.belon-laitinen@finpro.fi

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