Shipbuilding Business Opportunities in Russia & Azerbaijan27.5.2015

Ulla Lainio, Alexey Zak, Finpro St.Petersburg

Map of Russian shipbuilding and ship repair companies and design bureaus

6/1/2015 © Finpro2

What is Up in Russian shipbuilding

• St.Petersburg is the centre with 40 shipbuilding companies

• 80 % of shipbuilding activity of Russia is in St.Petersburg area

What has changed in Russia in 1 year?• Oil price ↓

• USD vs. Rouble ↑

• Sanctions

Forecast of new shipbuilding 2015 -2020• 70 new vessels to be ordered

• Sovcomflot to order 30 vessels. It is the biggest player

6/1/2015 © Finpro3

The Biggest Projects in Russian Shipbuilding

• Kerz bay

• Zvezhda in Bolshoi Kamen floating dock is under construction

• Severnaya Verf Dry dock renovation

• Baltiyski Zavod ice breakers

• North Caspian LUKOIL project

• Arkticheskaya offshore platform on Baltic Sea

• Prirazlomnoe platform is in production

• Siberian River fleet is developed

• Krasnoe Sormovo, Pella, Almaz, Nevski shipyards have new vessel orders

• Krylov Institute new ice pool is operating

• Astrakhan new shipyard

• Zvezda Shipyard (Far East) first vessel will be ready in 2016. Zvezda will build for Rosneft gas tankers and ice breakers

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Russia is modernizing 20 shipyards

• Company SSTC designs upgrade / modernization for 20 shipyards in Russia:

• Sevmash

• Zvyochdocka

• 35 CP3 Nerpa

• Severnaya Verft new dry dock 220x68 m, old dry dock 420 x 68 m upgrade. The yardwill build lots of vessels after modernization 2018 onwards: tankers, drillships, platforms

• Admiralteiskie Verfi

• Yantar

• Zvezda, Rosneft is the investor

• Amurskij Sudostroiltelnij Zavod

• Proletarskij Zavod

• OSK target is 50 % local content in shipbuilding and 100 % in ship design

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OSK (United Shipbuilding Corporation)

• OSK is owned by Russian state.

• OSK is the largest shipbuilding corporation in Russia.

• 80 % of Russian shipyards are owned by OSK.

• OSK owns 45 shipyards, 14 design companies. Headcount 85.000.

• OSK is building 64 civil vessels at the moment

• OSK needs 458 new civil vessels by 2030, 185 vessels are related to Arctic offshore.

OSK builds:

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Shipyards by regions

North-West Russia

Shipyards in Vyborg, St.Petersburg, Kaliningrad

1. Admiralteyskie Shipyard

Admiralteyskie ShipyardVessel Types

• Currently builds diesel submarines

and 1 diesel icebreaker for Russian Navy

• submarine Rostov-on-Don of project

636.3 for Russia's Black Sea Fleet

• Scientific expedition vessels (photo)

• Search and rescue vessels

• Tankers, also arctic

• The biggest shipyard in St.Petersburg.

• Has 3 km long yard on Neva

• Headcount: 6000

• Has big own machine workshop

6/1/2015 © Finpro10

Business Opportunities at AdmiralteyskieShipyard

• Sources from Finland for projects related to:

• shipyard building, machinery and infrastructure upgrade, civil vessels

• marine engines & propulsion systems, lifts, kitchen & laundry room equipment and electric systems

• Yard modernization projects offer opportunities for Finnish companies

• Invests constantly on yard modernization, currently constructs new production hall

• Is willing to visit new suppliers in Finland and Finns are welcome to offer whenconcrete demand rises

• Tenders are visible on company’s web site

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2. Almaz Shipyard

AlmazVessel Types

• Currently builds serials of: Crane vessels, patrol vessels for Russian coast guard• Good orderstock, yard is full until 2018

• Is not an OSK yard, import sanctions do not hit Almaz as hard as OSK yards

• Almaz has 2 similar sister shipyards in Russia, altogether there are 3 similar yards inRussia

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Business Opportunities at Almaz Shipyard

• Air conditioning & ventilation systems assembed Turn key

• Fire extinguishing systems, oil recovery equipment

• Scaffolding systems, shipbuilding tools

• Has sourced Paroc, Rolls Royce, and pumps from Finland

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3. Baltiysky Zavod

Baltiysky ZavodVessel Types

• Currently builds:

• 3 nuclear icebreakers and floating nuclear power plants.

• Russia’s first floating nuclear power station “Akademik Lomonosov” for use in the Arctic will be ready by October 2016

• Builds ice-classed vessels, large commercial cargo vessels and naval ships.

• Participated the Mistral project.

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Business Opportunities at Baltiysky ZavodShipyard

• Is allowed to source from Finland for projects related to shipyard building, machineryand infrastructure upgrade

• Needs scaffolding, shipyard tools, propeller machining subcontracting, frequencytransformers

• For propulsion system manufacturing there is opportunity for Finnish subcontractors

• Good orderstock, full

• Tenders are visible on company’s web site

• Builds ice breakers and needs equipment from Finland

• Has signficant in-house production and own machine workshop at yard

6/1/2015 © Finpro17

4. Nevsky Shipyard

Nevsky ShipyardVessel Types

• Currently builds:

• Civil cargo and service ships (3-6 ships p.a.)

• Ship repair (20-30 ships p.a.) for Russian shipowners.

• Tug-boats

• Has built 2 oil tankers for Norwegian owners

• Dry cargo vessels. Has built 10 vessel serie

for bulk cargo, steel, grain, timber, coal

• Search and rescue vessels for fire fighting, oil spills

• Auxiliary vessels

• Supply vessels

• Self propelled floating restaurants “River Palace”

• River-sea passenger vessel for Ladoga, Baltic sea cruises

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Business Opportunities at Nevsky Shipyard

• Needs propulsion systems,• Equipment for passenger & rescue vessels,• Ship interior fitting,• Marine engines,• Oil spill recovery systems,• Marine cables,• Fire fighting systems

• Has experience in purchasing from Finland

• Builds passanger and rescue vessels = suitable for Finns

• Yards director is in charge for Nevskij & Okskaya Sudoverf -> access to 2 yards

• All purchases via Tenders = transparency

6/1/2015 © Finpro20

5. Pella Shipyard

Pella ShipyardVessel Types

• Currently builds:

• Tugboats and motorboats (25-30 small vessels per year).

• Pella is the leading company in Russian tug building market

• Tugs and pilot boats are equipped by the world leading manufacturers,

such as: Caterpillar, Cummins, Rolls-Royce, Desmi, Furuno.

• Today Pella’s structure includes 9 companies: machinery, shipbuilding (2 companies), ship painting, energy, wiring, ship design, investments and fishing.

• Pella launched its second shipbuilding plant that was aimed to build vessels up to 6 meters depth. By 2015 new plant will make up to 8 vessels a year. By 2019 Pella plans to reach sales of 280-300 Mill. EUR a year

6/1/2015 © Finpro22

6. Rubin

RubinVessel types / Offering

• Rubin is the leading sub sea engineering and design company in Russia

• Feasibility analysis;

• Detailed design;

• Engineering support during construction;

• Follow-on supervision.

• Extensive experience in designing:

• Building structures;

• Engineering systems,

• Power systems;

• Living Quarters;

• Helideck outfitting

• Concept Design for Intermediate Offshore Heliport

• Concept Design for Movable Ice-Resistant Drilling Rig

• Offshore Safety Training Facilities6/1/2015 © Finpro24

Rubin Business Opportunities

• Business opportunity is sub sea structures and technology

• Sub sea pumps that function under sea ice in arctic waters not below 1000 m

• Maintenance of sub sea structures and equipment

• Rubin works with foreign companies (including Halliburton) on

production of oil platforms in drilling near Sakhalin Island, in the Sea of Okhotsk and in the waters of South Korea.

• Rubin knows some Finnish suppliers.

6/1/2015 © Finpro25

7. Severnaya Shipyard

Severnaya Shipyard Vessel Types

• Current projects: several military ships and series of service ships for oil platform.

• Military and civil ships (cargo, ro-ro, floating docks, fish processing).

• Shipyard builds heavy long ships for navy

• supply ships for drilling platforms for Russian and foreign markets.

• Shipyard provides naval shiprepair for foreign countries.

• New Dry dock 220x68m and dry dock modernization 420x68ml

• After modernization, Severnaya will build significant amount of vessels: tankers, drillvessels, platforms

• Headcount: over 1000

6/1/2015 © Finpro27

8. Severnoe Design Buro

Severnoe Design BuroVessel types

• Civile vessels

• Supply ice ships

• LNG carriers

• Fire-Fighting boats

• Rescue boats

• Patrol & Rescue vessels

• Support vessels

• Floating hotels

• Bulk cargo ships

• Military vessels

• Guard ships

• Destroyers

• Fregats

• Heavy nuclear power missile cruisers

6/1/2015 © Finpro29

Business Opportunities at Severnoe Design Buro

• Need suppliers to a new project: cable laying vessel

• Need companies with LNG tanker construction knowledge

• Fire sealing & cable penetrations, Fire extinguishing systems

• Marine engines, Lifting systems, Interior fitting

• Ship design software

• Electric , installation design, Marine cables

• Special steel

• Doors & windows

6/1/2015 © Finpro30

9. Shipbuilding and Ship Repair Technology Center

Business Opportunities at Shipbuilding and Ship Repair Technology Center

• Headcount: over 1000

• The biggest shipyard design company in Russia

• Center is planning and designing all new shipyards and modernization projects in Russia. Center has currently 20 main Russian OSK shipyards’ modernization projectson table

• Shipyard investment goods, working tools, laser cutting tools and know-how, weldingtechnology

• Zvezhda new shipyard project in Far East has space for new suppliers

• Open to Finnish suppliers

• Strong customers, designs all new and modenized shipyards in Russia.

• Has several export countries

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10. Sredne-NevskyShipbuilding Plant

Sredne-Nevsky Shipbuilding Plant VesselTypes

• Currently builds:

• Military ships and civil ships of small deadweight.

• General purpose commercial vessels,

• Catamarans, off-shore support vessels.

• 3 mine sweepers for Russian Defence Ministry

• Multifunctional vessel for Coast Guard

• Rescue vessels

• Planning to build a catamaran for 150 passengers

• Tug boats

6/1/2015 © Finpro34

Business Opportunities at Sredne-NevskyShipbuilding Plant

• Is planning to build a passenger vessel = sea bus. It is in project stage.

• Interior solutions from Finnish suppliers are interesting• Ship engineering & design, f.ex. Fish factory/boat• Oil spill recovery sytems• Scaffolding• Composite material• Trolley for moving blocks

• Open to Finnish suppliers

• Strong customers: Rosatom, Ministry for Defence, Severstal

• All purchases via Tenders = transparency

6/1/2015 © Finpro35

11. Vyborg Shipyard

Vyborg Shipyard Vessel Types

• Currently builds: 3 diesel sea ice breakers for Rosmorport (photos) with ArctechHelsinki

• Builds oil platforms, ice breakers, special vessels, big LNG projects = suitable for Finns

• Shipyard is fully booked and outsources block production to Klaipeda

• Finland is Vyborgs nr 1 priority partner country Has many suppliers in Finland Wärtsilä,Steerprop, Aliko…

6/1/2015 © Finpro37

Business Opportunities at Vyborg Shipyard

• Purchases via Tenders. Annual purchase plan on website• Yards machine workshop seeks production partners• Modernisation projects at Vyborg yard• Heavy steel construction projects• Opportunities: Piping & Iron works• Castings f.ex anchor chain• Fire fighting systems• Alarm & evacuation systems• Walls, panels• Accommodation modules & interior fitting• Bathrooms• Paint• Marine cables• Lighting• Doors & fire doors• Working tools• Deck machinery sub contractors

Photos: Aliko’s delivery and steel processing line at Vyborg yard

6/1/2015 © Finpro38

12. Yantar Shipyard

Yantar Shipyard Vessel Types

• Military and civil ships.

• Ship repair (about 60-70 ships per year).

• Commercial vessels, naval ships, metal structures manufacturing

• Yantar had a joint project with Aker Arctic Technology and

Arctech Helsinki Shipyard for icebreaking emergency and rescue

vessel Baltika.

Baltika (photo) was finalized at Arctech Helsinki

6/1/2015 © Finpro40

Business Opportunities at Yantar Shipyard

• Yantar is participating tender in April 2015. if they will win, Yantar will build 6 civil vessels.

• If they win they need Finnish suppliers of marine furniture, paints etc.

• Yantar is looking for suppliers willing to do close cooperation and deliver new technologies.

•

• Yantar has Polish and Lithuanian suppliers.

6/1/2015 © Finpro41

Arctic North Russia

Shipyards in Murmansk and Severodvinsk

13. Nerpa Ship Repair Yard

Nerpa Ship Repair yard Vessel Types

• The main ship repair yard for nuclear submarines of Russian Navy. • Repair civil ships as well• Part of “Zvyozdochka” shiprepair center.• Located near Polyarny on the Kola Peninsula, it is one of five naval yards where

nuclear submarines are dismantled. • Builds ships of 100 m length and weight up to 10 000 tons.• Supplies berth parts to Norwegian ports.

6/1/2015 © Finpro44

14. Sevmash

SevmashVessel Types

• Military and civil ships, oil platforms, pontoons.

• THE BIGGEST AND MOST POWERFUL SHIPYARD IN RUSSIA

• Headcount 50.000

• Ships with weight max 100.000 tons

• Sevmash has the largest sheltered docks in Russia, total 100 000 m2 +

• Extremely vast scope of activity

• the only shipyard in Russia whose

main focus is nuclear submarines for

Navy

Photo: Prirazlomnaya

Source: PortNews

6/1/2015 © Finpro46

Business Opportunities at Sevmash

• Plans to build 2 new oil platforms

• Needs to upgrade yard’s offshore know how

• Is interested in Finnish modular, interior and cabin solutions

• Needs solutions for harsh conditions

• Mega yacht construction

• All purchases via Tenders = transparency

• Has several suppliers from Finland, for f.ex Prirazlomnaya platform

6/1/2015 © Finpro47

15. Zvyozdochka

ZvyozdochkaVessel Types

• Propellers, propulsion systems NEW FOCUS

• Manufactures world’s strongest propellers for ice

breakers, cruisers & submarines for export &

Russian market incl. Finland fex to ABB

• Repair of nuclear submarines TRADITIONAL FOCUS• offshore platforms NEW FOCUS

• Electric engines

• Repair & newbuilds

• Civil vessels

• Marine furniture

• Headcount: 15.000. 2nd largest yard in Russia

Photo: floating drilling rig Arkticheskaya

6/1/2015 © Finpro49

Business Opportunities at Zvyozdochka

For manufacturing of propulsion systems, propellers, screws and blades

• Propulsion manufacturing at Zvyozdochka is ↑

• Seek suppliers from Finland

• Is interested in establishing assembly plant in Finland

• Wants Finnish industrial service, engine manufacturers & engineering companies toestablish in the new factory at yard in Russia

• Needs manufacturers and sub suppliers of electric engines & propulsion systems

• Has wide experience in purchasing from Finland, knows majority of Finnish suppliers

• Recently built a new assembly factory at yard

• Russia aims to operate on 10 oil platforms, this yard participates in their construction

6/1/2015 © Finpro50

Shipyards by Volga inNizhnij Novgorod and Yaroslavl and Moscow

16. Moscow Shipbuilding and Shiprepair Yard

Moscow Shipbuilding and Shiprepair Yard Vessel Types

• Is the only shipyard in Moscow• Moscow yard has built and outfitted the finest luxury yachts in Russia, length 25-

100 m.

• River passenger ships

• Fishing boats

• Cooperates with Holland based Timmerman Yachts in luxury yacht segment.

• Has the world leading suppliers of ship equipment

• In June 2014 yard launched the lead ship of project 23020 Astrakhanets. The series of three passenger ships designed by Marine Technics Group are being built at MSSZ yards for passenger traffic on urban and commuter lines of Astrakhan region.

6/1/2015 © Finpro53

Business Opportunities at Moscow Shipbuilding and Shiprepair Yard

For passenger vessels and luxury yachts:

• Turn Key ship interior suppliers

• component, furniture suppliers

6/1/2015 © Finpro54

17. YaroslavskyShipbuilding Plant

Yaroslavsky Shipbuilding Plant Vessel Types

• civil and military vessels• small guard-ships;

• high-speed boats from 10 to 100 tons;

• patrol and landing air cushion crafts ;

• auxiliary vessels for emergency and rescue service with displacement up to 1400 tons;

• river-and sea high-speed passenger vessels with capacity of up to 150 persons;

• fishery guard and fishing vessels;

• river liquid tankers for oil products and edible fats;

• floating pumping station;

• vessels for recreation and tourism6/1/2015 © Finpro56

18. Nobel Shipyard

Nobel Shipyard Vessel Types

• Hulls of mega yachts for Moscow Shipyard

• Rescue boats for booms installation;

• Sea and river oil tankers;

• Sea and river dry cargo ships, designed and constructed according to European standards for transportation of general cargo, containers of international standard, wood, bulk and hazardous cargo;

• Special service ships including sea diving and survey ships;

• Vessel hulls of different types including hulls of modern comfortable yachts.

6/1/2015 © Finpro58

19. Zelenodolsky Plant A.M.Gorky

Zelenodolsky Plant A.M.GorkyVessel Types

• naval ships

• civil (commercial) ships

• high-speed passenger vessels

• Special purpose ships and boats

• Freight vessels of steel for marine, river, river-sea

• Passenger express ships of light alloys.

• This is one of the biggest shipyards in Russia

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Shipyards in Far East Vladivostok

20. Zvezda in BolshoyKamen

Zvezda in Bolshoy KamenVessel Types

• Zvezda shipyard in expanded

• Rosneft invests in new yard construction

• The total cost to construct the shipbuilding complex is approximately $4.2bn. Uponcompletion, the Zvezda Shipbuilding Complex will be the biggest shipbuildingcomplex in Russia, fitted to build all types of naval and merchant ships.

• The workshop will process 45,000t of steel annually from 2015 and the capacity willbe doubled to 90,000t from 2018 onwards.

• Konecranes will supply 15 tailor-made cranes with automatic mode, each capable ofhoisting 120t

• The first vessel or the new yard is estimated to be ready in 2016

6/1/2015 © Finpro63

Business Opportunities at Zvezda

• Rosneft wants Ice class shipbuilding education export from Finland to Far-East University

• There will be an industrial park for assembly factories of all kind of ship equipment

• ALL KIND of ship equipment subcontractors are needed

• Local manufacturing is obligatory

• This will be the biggest shipyard in Russia

• Tax free zone

6/1/2015 © Finpro64

Shipyards in Astrakhan

Main Shipyards in Astrakhan Region

• Astrakhan Production Association ASPO includes 3 shipbuilding plants:

1. Astrakhansky Karabel (also called ASPO main yard)

Transportable drilling rigs (jack-ups, semi-submersible drilling rigs, drilling barges); Production platforms, Construction vessels (floating cranes, pipe-layers, barges); Support vessels (supply vessels, anchor-handling tugs, fire-fighters)

2. III Internatsional (also called ASPO site 3)

3. Lotos

Transportable drilling rigs (jack-ups, semi-submersible drilling rigs, drilling barges);

• Krasnye Barrikadi Shipyard

Drilling platforms, crane ships, barges, tankers.

• Offshore vessel construction is concentrated in Astrakhan.

6/1/2015 © Finpro66

Shipyards in Azerbaijan

Azerbaijan Shipyards and Marine & OffshoreCompanies

• Baku has 3 shipyards: Baku Shipyard, Caspian Shipyard and SOCAR yard.

• State Oil company SOCAR is the end user of vessels built at yards

• Caspian Shipping Company is a shipowner who builds its fleet at Baku Shipyard. It hasa 300 vessel fleet.

• Baku Shipyard builds all vessel types: Passenger vessels, tugs, multi-purpose vessels, semi submersible rigs, dry cargo vessels – almost all what is needed at Caspian Sea. tarvitaan.

• Keppel Singapore owns part of Caspian Shipyard and Baku Shipyard and decides on Caspian Shipyard purchases and designs vessels that are built in Baku.

• Konecranes, Pemamek, Wärtsilä, ABB, VEO, Technip are known in Azerbaijan.

• Baku shipyards offer business opportunities to the same Finnish suppliers whosupply Helsinki and Technip Pori yards.

• Next event: Caspian Oil & Gas Exhibition 2.-5.6.2015, Baku

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SOCAR Shipyard

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Web-site www.socar.az

Location Baku

Ownership Socar (State Oil Company of Azerbaijan)

Type of ships

Large-diameter ascending pipesJackets, supporting parts of offshore stationary platforms;stakes, decks

Company information

• Baku Deep Water Jacket Plant named after Heydar Aliyev ofSOCAR (State Oil Company of Azerbaijan).

• Production started 1984• Capacity: 60 thousand tons• Large, important and experienced offshore yard

Contactinformation

Contact via Socar

Offshore building

Caspian Shipyard

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Web-site www.socar.az

Location Baku

Ownership Keppel AzerFels Pte Ltd. (Singapore), Socar, Lukoil

Type of ships

Current project under construction: new semi submersible rigfor Socar.Shipbuilding and shiprepair of all vessel types, f.ex jack uprigs.Yard is one of Keppel Singapore production units and fulfillsKeppel’s orders. Purchase decisions are made in Singapore.

Company information

Established 1997

Contactinformation

General Director: Lau Kuat PinТеl: (99412) 4499930, mob. (99450)2205265 E-mail:kp.lau@csc.az

Businesspotential for Finnish suppliers

Suitable for Suppliers of Helsinki and Technip Finland yards

Offshore and Shipbuilding

Ship repair

Baku Shipyard LLC

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Web-site www.bakushipyard.com

Location Baku

Ownership 3 shareholders: Keppel, Socar, Investment company

Type of ships

1st project: pontoons, 2nd project: multifunctional vessel isunder construction. Future projects: tankers, dry cargo,passenger vessels, subsea construction, tugs, semisubmersible rigs.

Company information

Brand new shipyard, 1st construction phase was ready in2013. 2nd phase pending (upper photo).

Contactinformation

Deputy General Manager: Imanverdi HasanovТеl.+994 (12) 4464902 direct, +994(50)2545554E-mail:imanverdi.hasanov@bakushipyard.com

Businesspotential for Finnish suppliers

Suitable for Suppliers of Helsinki and Technip Finland yards

Offshore and Shipbuilding