Business Enquirer Issue 117 | Lamprell | September 2023

MILESTONE BOARD MEETING SIGNALS NEXT STEPS FOR UAE-BASED MULTIMILLION DOLLAR BUSINESS LAMPRELL

MILESTONE BOARD MEETING SIGNALS NEXT STEPS FOR UAE-BASED MULTI-MILLION DOLLAR BUSINESS

Joining the company in April 2023, the appointment of experienced energy industry CEO Ian Prescott heralds an exciting period for Lamprell.

Nearing its 50th year in business (in 2026), Lamprell is a leading provider of contracting services to the international energy sector. Established by Steven Lamprell, who is still an actively involved shareholder, in 2022, Lamprell’s Board greenlighted a takeover worth a reported $46.5 million by Thunderball Investments, a consortium of Blofield Investment Management and Al Gihaz Holding.

Despite employing approximately 5000 people across the business, new CEO Ian has highlighted the family culture, which has been instilled by Steven since the beginning.

“Over 1000 of our colleagues have been with the business for over 15 years, and in

a recent company-wide survey, staff noted the people and family focused culture that has been built at Lamprell,” commented Ian.

With staff often working in harsh environments (with temperatures reaching an average daily maximum of 44 degrees celsius in August), staff safety is paramount.

Whilst the data does the talking, with Lamprell’s July 2023 total recordable injury rate at 0.09% compared to the industry standard of 0.39%, Lamprell walks the talk as well.

“We have a yard employee committee which helps to anchor important health and safety initiatives into the business,

DIRECTED BY: JACK COFFEY ARTICLE WRITTEN BY: LAURA WATLING

Ian Prescott, Chief Executive Officer

such as required use of our cold rooms and hydration,” explained Ian, “since joining Lamprell, I’ve tried to spend as much time as possible with our people and our customers, I’m very much a people person and I find having this hands on approach gives me the best understanding of the business, our people and our customers”.

The recent completion of a strategic workshop which was attended by 15 employees from across the business, has helped both Ian and the Board get a strong understanding of where the company has been and where stakeholders want to take it in future.

“The workshop resulted in a 120-page presentation which formed the basis of a full-day Board meeting. The strategy has been bought into by our shareholders, the Board, and most importantly our people, and we now have a clear path moving forward. Since I joined the business, this feels like the most pivotal moment, enabling us to start rebuilding our capability and move forward with some key projects,” said Ian.

Ian brings with him a wealth of experience in the Oil and Gas sector, helping to turnaround and grow businesses across a diverse range of sectors and geographies.

Starting with Shell as an apprentice, Ian went on to work at Aker Solutions, ultimately driving the growth in Australia’s northern region from a small set-up of 23 employees to over 1000 personnel, accounting for more than half of the Australian business.

Offshore wind turbine jackets constructed by Lamprell

ABOUTEZHONG

Established in 1958, EZHONG is a professional manufacturer of customized equipment such as heavy-duty 3 rolls plate rolling machine, heavy-duty 4 rolls plate rolling machine, thick plate leveling machine and horizontal axle press machine in China. EZHONG

plate rolling machine rolled thickness 300mm plate, plate leveling machine leveled thickness 120mm plate. EZHONG products have spread all over the world: China, UAE, USA, Russia, Vietnam, Thailand, Indonesia, Iran, India and other countries.

PRODUCT INTRODUCTION

EZHONG EZXW11S-200x4500 full-hydraulic 3 rolls

plate rolling machine used at Lamprell site started production in EZHONG in September 2022, After high-efficiency production, it finally arrived at the Lamprell site at the end of March

Thanks to the assistance of Lamprell's on-site personnel, machine was officially put into production after a

EZXW11S-200x4500 3 Rolls Plate Rolling Machine

Plate Thick: 200mm Plate Width: 4500mm Yield Limit: 500Mpa Industry: Wind Tower

EZW43T-120x3000 7 Rolls Plate Leveling Machine

Plate Thick: 120mm Plate Width: 3000mm Yield Limit: 400Mpa Industry: Steel Structure

EZH�NB

-- since 1958

EZHONG Heavy Machinery Co.,Limited Tel:+86 18607172902

E-mail:sales@ezhonggroup com Web:www.ezhonggroup.com

month of installation and commissioning for the Moray West Offshore Wind Farm project. It has been in use for nearly 4 months and maintained high-yield and high-efficiency rolling! The high level of Lamprell's senior leadership recognized, hope to continue to establish a cooperative relationship with EZHONG.

Leveling At JZNEE Site

Rolling At Lamprell Site

Further to Aker Solutions, during his tenure as Senior Vice President, Asia Pacific, at McDermott International, Ian helmed the growth of the business from 4000 employees and a turnover of around $200 million a year to an impressive 20,000 employees and a turnover approaching $2 billion per year.

“It’s important to remember that this isn’t my success story; this is very much a team game and I’ve always been very fortunate to work with outstanding individuals and teams,” added Ian.

It’s expected that Ian’s appointment at Lamprell will help to drive its newly adopted strategy, supporting the business in renewing its title as a market leader.

Lamprell’s strategy focuses on two key energy sectors: Oil and Gas, which includes its site services business units and Renewables.

Working for the likes of ADNOC, Dubai

Petroleum and Saudi Aramco, Lamprell has been working in the oil and gas sector since its inception.

Within this segment, the business, which has two main facilities in the UAE comprising over 750,000m2 between the sites, one with a 1.2 kilometre quayside, is recognised for building complex offshore and onshore process modules and platforms, fabricating and refurbishing rigs and liftboats and providing maintenance services.

Its smaller business offering includes its onshore focused engineering and construction (E & C) business, operations and maintenance (O & M) division which includes a roster of around 1000 labour staff and its Sunbelt business which is focused on providing health and safety equipment and services.

“We’re planning to expand all our smaller businesses, and for some, that will mean beyond the UAE, into Qatar, Kuwait and

EZHONG, established in 1958, the one of the largest manufacturers of heavy-duty plate rolling machines, heavy-duty leveling machines, high-efficiency production lines and customized equipment in the world. With nearly 70 years of production experience, its products and services have spread all over the world: China, the United Arab Emirates, the United States, Russia, Vietnam, Thailand, Indonesia, Iran, India, Zambia and other countries.

wind power, petroleum, nuclear power and general construction machinery. EZHONG can also provide a wide range of automation for plate rolling machines, including plate loading systems, feeding tables, side supports, top supports, roller tables and many other customized solutions.

EZHONG has a high number of patents in the industry, has been committed to the research and development of rolling technology and strives to acquire the best skills in the process. Currently, EZHONG equipment adopts the most advanced 3D CAD technology and submits finite element analysis to enhance the stability of the equipment. EZHONG is continuously improving and applying to the production of plate rolling machines and leveling machines, always ready to design customized solutions to meet customer needs.

EZHONG products include heavy-duty plate rolling machines with the widest rolling range (3 rolls and 4 rolls), with a width of 2 to 6m and a thickness of 30 to 300mm, and which produced a three-roll plate rolling machine with a pressure force of 8000T.

Plate rolling machines are widely used by major and leading companies in the wind tower, foundation, tripod, monopile, pressure vessel and other industries;

High-precision heavy-duty plate leveling machine, used for leveling plates with a width of 1-6m and a thickness of 10-200mm, customized equipment for bridge steel structure, engineering machinery, aerospace, shipbuilding and other fields.

EZHONG specializes in the production of leveling machines, and has produced seven-roll leveling machines with a thickness of 120mm and a width of 3000mm.

EZHONG is also the preferred supplier of many global top companies in the fields of offshore

It is a great honor for EZHONG to cooperate with LAMPRELL (www.lamprell.com) with the 200x4500 three-roller plate rolling machine to help the offshore wind power Moray west project. EZHONG will continue to carry forward the enterprise spirit of being pragmatic, harmonious, and concentric, and make persistent efforts to climb the peak bravely, dedicate metal forming equipment with excellent quality, leading technology, and economical reliability, and continue to contribute to the world's environmental protection!

www.ezhonggroup.com

Saudi Arabia. Ultimately, we would like to see our presence increase significantly in Saudi Arabia,” shared Ian.

The Rise of Renewables

Lamprell first stepped into the renewables industry in 2007, working with Fred Olsen and Seajacks on the production of six offshore wind installation vessels.

Later in 2017, the company started fabricating wind turbine foundation components and has to date delivered over 130 jackets, 90 suction buckets and 180 piles for clients, including ScottishPower Renewables, GeoSea and Seaway 7.

Currently, the business is in the process of delivering 62 transition pieces to client Moray Offshore Windfarm (West) Ltd for a wind farm in Scotland.

To support this project and those anticipated in the future, Lamprell embarked on a multi-million dollar investment into its ‘production line’. The production line, which has the capacity to produce 150 transition pieces per year, was commissioned in early 2023 and is now being used to deliver 62 of these units for the Moray West project. Thanks to its serial production, it sees transition pieces being built efficiently, on time, on budget and, most importantly, safely.

“We’re very proud of the production line, which is operational 24/7,” explained Ian, “it’s a strong offering to the industry, which has a big demand for these pieces and can produce high-quality products with few weld failures.

Transition pieces being fabricated by Lamprell

According to 4C Offshore’s Q2 2023 report, there could be as much as 268 GW of installed capacity in offshore wind by 2030 if all planned and potential projects go ahead, of which approximately 55 GW is already installed. In our target markets alone, we have identified huge demands for offshore wind components over the next several years.”

Uniting Through Education

Of the UN’s 17 SDGs, 13 are applicable to Lamprell’s operations, and over the y ears, they have developed and implemented several sustainable measures that are geared towards these. Ensuring sustainable consumption and production patterns is a sustainable development goal that Lamprell works towards daily. The result shows that an average of 90% of the waste generated from our

operations is diverted from landfills. This is one of the highest amongst our peers in the industry.

A key element to meeting these requirements includes Lamprell’s focus on education.

Working with the Don Bosco Foundation, Lamprell has a successful apprenticeship scheme, up-skilling those from impoverished communities. It’s also partnered with SmartLife Foundation, which provides a literacy programme that has seen significant uptake.

“Of our 5000 employees, we have around 45 different nationalities. By supporting a reading programme to improve English skills, we can share a language making it easier to develop the business, disseminate learnings, and keep our colleagues safe,” explained Ian.

Working in Partnership to Strengthen the Industry

Working alongside Saudi Aramco, Lamprell is one of ten key companies engaged by the business as part of its prestigious offshore long term agreement (LTA) programme, and one of five who is currently active.

Currently, the business is supporting Aramco in various LTA expansion projects.

“Our continued work with Saudi Aramco offers us the opportunity to grow and develop. A key element of our strategy will be to grow and develop our relationship with them, becoming their partner of choice,” said Ian.

In addition, through a joint venture with Saudi Aramco, Bahri and Hyundai Heavy Industries, Lamprell owns a 20% share in

International Maritime Industries (IMI).

The IMI yard, resulting from a $6 billion investment, is a state-of-the-art facility focusing on the construction, maintenance, repair and overhaul of offshore rigs, commercial vessels and offshore service vessels for the oil and gas and maritime sectors.

Through its IMI partnership, Lamprell will also deliver two new build jackup rigs to ARO Drilling, a joint venture between Aramco and Valaris Companies. Once complete, Lamprell would have delivered a total of 30 offshore jackup rigs in its history.

Lamprell has also recently embarked on exciting projects to enhance its digital prominence.

Working with Akselos, a cutting-edge

simulation technology leader, Lamprell has in place a exclusive distributor agreement that allows it to provide customers with unique digital twin technology to assist them with their asset management activities.

Following a study on its lifting frame, it was determined that Akselos’ engineering software had the potential to reduce the steel weight and associated costs of offshore wind foundations by up to 30%. “Our aim is to improve our constructability input and enhance future designs significantly; we have already gained unprecedented insights into cost reduction

opportunities for our clients,” explained Ian.

In respect to its work with digital twins, Lamprell also recently won a Hexagon Award for the Best in Operation category.

Whilst Lamprell has faced both the challenges and opportunities of the oil and gas industry over the years, with its strategy being led by Ian Prescott and backed by staff and stakeholders alike, it feels as if it is on the precipice of something monumental.

www.lamprell.com

Lamprell’s Hamriyah facility, where it has built and refurbished numerous jackup drilling rigs

Lamprell’s renewables production line